Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Company A has 4,000 shares. The initial price was $5.00/share and the current price is $7.00/share. Company B initially had 3,000 shares at $15.00/share and
- Company A has 4,000 shares. The initial price was $5.00/share and the current price is $7.00/share. Company B initially had 3,000 shares at $15.00/share and currently has 9,000 shares at $6.00/share.
- Assuming these stocks comprised a price-weighted index, with an initial value of 100, calculate the current value of the index assuming a change in the divisor.
- Calculate the new value of the divisor.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started