Question

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

Price/Share | Shares Outstanding | |||||

Stock | X | Y | Z | X | Y | Z |

13-Jan | $ 22.00 | $ 36.00 | $ 52.00 | 1000 | 2000 | 1000 |

14-Jan | $ 25.00 | $ 33.00 | $ 28.00 | 1000 | 2000 | 2000 |

15-Jan | $ 30.00 | $ 29.00 | $ 25.00 | 1000 | 2000 | 2000 |

16-Jan | $ 11.00 | $ 32.00 | $ 23.00 | 3000 | 2000 | 2000 |

*2:1 Split on Stock Z after Close on Jan. 13

**3:1 Split on Stock X after Close on Jan. 15

The base date for index calculations is January 13

A. Refer to the exhibit above. Calculate a price weighted average for January 13th.

B. Refer to the exhibit above. What is the divisor at the beginning of January 14th?

C. Refer to the exhibit above. What is the percentage change in the price weighted index from January 13 to January 14?

D. Refer to the exhibit above. Calculate a value weighted index for January 13th if the initial index value is 100.

E. Refer to the exhibit above. Calculate a value weighted index for January 14th if the initial index value is 100.

Answer #1

(Pt represents price at time t, and Qt represents shares
outstanding at time t. )
Stock C splits 3 for 1 in year 2018 and Stock D splits 2
for 1 in year 2019
Name
P17
Q17
P18
Q18
P19
Q19
W
170
100
175
100
172
100
X
95
200
98
200
97
200
Y
180
200
57
600
60
600
Z
100
200
110
200
55
400
A. What is the new
divisor for the price-weighted index in...

Use the following table to answer the next two questions.
Stock
1/2/19 Price
1/2/20 Price
X
50
48
Y*
70
55
Z**
114
69
*4:3 Split after close of 1/2/19
**8:5 Split after close of 1/2/19
Find the percentage change in a price weighted index consisting
of these three stocks from 2019-2020. Round intermediate steps and
your final answer to four decimals.
Find the percentage change of an equally weighted index
consisting of these stocks. Round intermediate steps and your...

Considering three stocks in the following table.
Pt represents a price at day t, and
Qt represents the number of shares outstanding at
day t. Stock C splits ten-for-one at the beginning of day 2.
P0
Q0
P1
Q1
P2
Q2
A
81.52
1000
85.32
1000
90.16
1000
B
48.12
2000
45.24
2000
47.52
2000
C
611.23
2000
632.25
2000
60.45
20000
Calculate the rate of return on a price-weighted index of the
three stocks for the first day (...

Consider the following information on the stock market in a
small economy.
Company
Shares Outstanding
Price, beginning of year
Price, end of year
1
100
$70
$75
2
1000
$17
$20
3
10,000
$6
$8
Round your answers to 1 decimal place.
Compute a price-weighted stock price index for the beginning of
the year and the end of the year. What is the percentage
change?
Compute a value-weighted stock price index for the beginning of
the year and the end...

Three corporations (X, Y, Z) have preferred stock. The current
stock price per share and dividend per share of the preferred stock
of X, Y, and Z are shown below.
X: stock price = $50, dividend per share = $3
Y: stock price = $60, dividend per share = $4
Z: stock price = $80, dividend per share = $4
If you calculate the cost of the preferred cost stock
(RP) for each and list these in order from
HIGHEST...

Use the following information to answer the next two
questions.
Price
Shares
(millions)
1/1/13
1/1/14
1/1/15
Douglas McDonnell
200
$
70
$
73
$
87
Dynamics General
300
51
46
60
International Rockwell
390
80
69
86
Find the rate of return for an equally weighted index from
2014-2015.
.2394
.2464
.2475
.2671
Find the percentage return on a value weighted index from
2013-2014.
-.0647
-.0858
-.0411
None...

Company X has 8 million shares of common stock outstanding. The
current share price is $57, and the book value per share is $5. The
company also has two bond issues outstanding. The first bond issue
has a face value of $70.8 million and a coupon rate of 7 percent
and sells for 107 percent of par. The second issue has a face value
of $60 million and a coupon rate of 7 percent and sells for 109
percent of...

Company X has 8 million shares of common stock outstanding. The
current share price is $57, and the book value per share is $5. The
company also has two bond issues outstanding. The first bond issue
has a face value of $70.8 million and a coupon rate of 7 percent
and sells for 107 percent of par. The second issue has a face value
of $60 million and a coupon rate of 7 percent and sells for 109
percent of...

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 5 minutes ago

asked 5 minutes ago

asked 8 minutes ago

asked 13 minutes ago

asked 18 minutes ago

asked 23 minutes ago

asked 32 minutes ago

asked 34 minutes ago

asked 36 minutes ago

asked 41 minutes ago

asked 43 minutes ago

asked 58 minutes ago