Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 DECEMBER 31, Year 2 Shares Shares Outstanding Price Outstanding 102,000,000 $34
Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 DECEMBER 31, Year 2 Shares Shares Outstanding Price Outstanding 102,000,000 $34 48 42 Price $22 84 39 Stock K Stock M 2,300,000 28,000,000 Stock R 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 PWIyear 2: VWIyear 19 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. 102,000,000 4,600,000 28,000,000 %
Step by Step Solution
★★★★★
3.45 Rating (155 Votes )
There are 3 Steps involved in it
Step: 1
SOLUTION To compute the beginning and ending values for a priceweighted index PWI and a marketvalueweighted index VWI we need to calculate the sum of the stock prices and market values respectively a ...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