Question
Assume 3 stocks X, Y and Z and construct an index consisting of the top 2 stocks by market capitalisation. Share price Shares Period
Assume 3 stocks X, Y and Z and construct an index consisting of the top 2 stocks by market capitalisation. Share price Shares Period 1 Period 2 Period 3 X 1,000 $10 $10 $10 Y 20,000 $1 $1 $1 Z 10,000 $3 $5 $3 Z declares a dividend of $2 per share and its stock trades 'cum div' Period 2 and 'ex div' Period 3 Estimate the value of the accumulation index in period 3. A) 2.2 or 2,200 B) 3.857 or 3,857 C) 4.0 or 4,000 D) 4.333 or 4,333 E) None of the above ANTEN-
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Frank Woods Business Accounting
Authors: Frank Wood. Sangster, Alan
12th Edition
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