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Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 DECEMBER 31, Year 2 Shares Shares Price Outstanding Price Outstanding Stock K
Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 DECEMBER 31, Year 2 Shares Shares Price Outstanding Price Outstanding Stock K $22 101,000,000 $33 101,000,000 Stock M 78 2,500,000 43 5,000,000 Stock R 38 29,000,000 41 29,000,000 Stock split two-for-one during the year. a. Compute the beginning and ending values for a price-weighted index and a market value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Round your answers to two decimal places. PWIyear 1: PW Iyear 2: VWIyear 1: VWIyear 2: b. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places. Percentage change in PWI: Percentage change in VWI: C. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two decimal places. %
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