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

  1. 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.
    "FOOTNOTE 4: The per share change in Berkshire Hathaway's A Class share price at the date of the announcement was $1895. 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."

    1. $ 1.58 Billion

    2. $ 4.05 Billion

    3. $ 4.73 Billion

    4. $ 6.31 Billion

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Answer #1

On the day of the announcement,

Share A class price change = $1,895

Share B class price change = $1,895/1,500

No. of class A shares = 811,755

No. of class B shares = 1,247,366,163

Total loss = Loss on share class A + Loss on share class B

= $1,895 * 811,755 + $1,895/1,500 * 1,247,366,163

=$1,538,275,725 + $1,575,839,252.59

=$3,114,114,977.59

=$3.114 Bn

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