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On the day of the announcement, what was the total loss in market value of class...

On the day of the announcement, what was the total loss in market value of class A and Class B shares combined based on data given in footnote 4.

4 The per-share change in Berkshire Hathaway’s Class A share price at the date of the announcement was $1,895. The company had 811,755 Class A shares outstanding and 1,247,366,163 Class B shares outstanding. Class B common shares are equivalent to 1/1500th of Class A common shares.

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Answer #1

Class A:

The per share change in share price = $1895

Total outstanding shares = 811755

Total change in market value of class A shares = 1895 * 811755 = $1.54 billion

Class B:

The per share change in share price of class B shares = 1/1500 of class A common shares

= 1895 / 1500 = $1.26

Total outstanding shares = 1247366163

Total change in market value = 1247366163 * 1.26 = $1.57 billion

Therefore, the total loss in market value of class A and class B shares combined = $1.54 + $1.57 = $3.11 billion

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