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The Franklin Index is a value-weighted index that had a value last year of 4,300. The Index is composed of the three stocks in this
The Franklin Index is a value-weighted index that had a value last year of 4,300. The Index is composed of the three stocks in this table. The market prices and outstanding shares for last year and for today are given in the table. What should be todays Franklin Index value?
Stock | Last years data | Todays data | ||
Price | Shares out | Price | Shares out | |
1 | $50 | 1,000 | $55 | 1,000 |
2 | 120 | 500 | 120 | 500 |
3 | 30 | 500 | 45 | 500 |
A. | 4,730 | |
B. | 4,910 | |
C. | 4,510 | |
D. | 4,375 |
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