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Problem 4-06 Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 DECEMBER 31, Year 2 Shares Shares Price Outstanding Price Outstanding
Problem 4-06 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 $22 109,000,000 $32 109,000,000 Stock M 74 2,300,000 40 4,600,000 Stock R 36 24,000,000 39 24,000,000 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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