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Problem 4-06 Consider the following stock price and shares outstanding information. DECEMBER 31, DECEMBER 31, Year 1 Year 2 Shares Shares Price Outstanding Price Outstanding
Problem 4-06 Consider the following stock price and shares outstanding information. DECEMBER 31, DECEMBER 31, Year 1 Year 2 Shares Shares Price Outstanding Price Outstanding Stock $20 100,000,000 $34 100,000,000 Stock 78 2,400,000 43 4,800,000a Stock 41 30,000,000 44 30,000,000 astock 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 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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