Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

QUESTION 1 If a stock index has 3 stocks with the following prices : $30, $45, and $55; What is the Price Weighted Index? Round

image text in transcribed

QUESTION 1 If a stock index has 3 stocks with the following prices : $30, $45, and $55; What is the Price Weighted Index? Round your answer to 2 decimal places (XX.XX) QUESTION 2 Assume the $45 stock from problem 1 announces a 3:1 split. What is the new divisor required to maintain the integrity of the index? Round your answer to 4 decimal places (XX.XXXX) QUESTION 3 If the stocks in the index from problem 1 above have shares outstanding of 2 million, 5 million and 10 million, respectively; what would the value weighted index be (rounded to $ millions with 2 decimal places XXXX.XX)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Information Technology Auditing An Evolving Agenda

Authors: Jagdish Pathak

1st Edition

3642060579, 978-3642060571

More Books

Students also viewed these Accounting questions