Question
In: Finance
Able, Baker, and Charlie are the only three stocks in an index.
Problem 5-9 Price-Weighted Divisor (LO4, CFA2)
Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $55, $312, and $92, respectively. If Able undergoes a 3-for-4 reverse stock split, what is the new divisor?(Do not round intermediate calculations. Round your answer to 5 decimal places.)
Divisor=?
Solutions
Expert Solution
The new divisor is computed as shown below:
= ($ 55 x 3 / 4 + $ 312 + $ 92) / [ ($ 55 + $ 312 + $ 92) / 3 ]
= $ 445.25 / $ 153
= 2.91013 Approximately
jeff jeffy answered 2 years agoRelated Solutions
At the end of February, after the second month of operations of Able Baker Charlie Company,...
At the end of February, after the second month of operations of
Able Baker Charlie Company, Charles shows you the data he’s
collected, but he was unable to figure out some of the amounts.
Review the following data and fill in the missing amounts on the
chart for Able Baker Charlie Company. Note: It may be helpful to
use T accounts to map the flow of the amounts through the
manufacturing accounts and solve for the missing dollar values. It...
At the end of February, after the second month of operations of Able Baker Charlie Company,...
At the end of February, after the second month of operations
of Able Baker Charlie Company, Charles shows you the data he’s
collected, but he was unable to figure out some of the amounts.
Review the following data and fill in the missing amounts on the
chart for Able Baker Charlie Company. Note: It may
be helpful to use T accounts to map the flow of the amounts through
the manufacturing accounts and solve for the missing dollar values.
It...
Suppose Stocks A, B and C are the only three component stocks in a benchmark index....
Suppose Stocks A, B and C are the only three component stocks in
a benchmark index. The number of shares outstanding of Stocks A, B
and C are 371,000 shares, 312,000 shares, and 234,000 shares,
respectively. The prices of Stocks A, B and C for Days 1, 2, 3 and
4 are given in the table below:
Stock A
Stock B
Stock C
Day 1
30.37
41.70
81.85
Day 2
31.03
40.61
78.65
Day 3
32.05
42.03
79.28
Day 4...
Charles Maxwell is starting a cheesecake bakery, Able Baker Charlie Company, to produce and sell different...
Charles Maxwell is starting a cheesecake bakery, Able Baker
Charlie Company, to produce and sell different flavored cheesecakes
to restaurants and the general public. He has just begun his study
of accounting, and is a bit confused about the many types of
reports he has read about and how they will help him run his
business. He asks you to help him clarify what the differences
between managerial accounting and financial accounting are. He’s
also wondering how to set up...
Charles Maxwell is starting a cheesecake bakery, Able Baker Charlie Company, to produce and sell different...
Charles Maxwell is starting a cheesecake bakery, Able Baker
Charlie Company, to produce and sell different flavored cheesecakes
to restaurants and the general public. He has just begun his study
of accounting, and is a bit confused about the many types of
reports he has read about and how they will help him run his
business. He asks you to help him clarify what the differences
between managerial accounting and financial accounting are. He’s
also wondering how to set up...
Charles Maxwell is starting a cheesecake bakery, Able Baker Charlie Company, to produce and sell different...
Charles Maxwell is starting a cheesecake bakery, Able Baker
Charlie Company, to produce and sell different flavored cheesecakes
to restaurants and the general public. He has just begun his study
of accounting, and is a bit confused about the many types of
reports he has read about and how they will help him run his
business. He asks you to help him clarify what the differences
between managerial accounting and financial accounting are. He’s
also wondering how to set up...
Mastery Problem: Introduction to Managerial Accounting Able Baker Charlie Company Charles Maxwell is starting a cheesecake...
Mastery Problem: Introduction to Managerial Accounting
Able Baker Charlie Company
Charles Maxwell is starting a cheesecake bakery, Able Baker
Charlie Company, to produce and sell different flavored cheesecakes
to restaurants and the general public. He has just begun his study
of accounting, and is a bit confused about the many types of
reports he has read about and how they will help him run his
business. He asks you to help him clarify what the differences
between managerial accounting and...
Mastery Problem: Introduction to Managerial Accounting Able Baker Charlie Company Charles Maxwell is starting a cheesecake...
Mastery Problem: Introduction to Managerial
Accounting
Able Baker Charlie Company
Charles Maxwell is starting a cheesecake bakery, Able Baker
Charlie Company, to produce and sell different flavored cheesecakes
to restaurants and the general public. He has just begun his study
of accounting, and is a bit confused about the many types of
reports he has read about and how they will help him run his
business. He asks you to help him clarify what the differences
between managerial accounting and...
Mastery Problem: Introduction to Managerial Accounting Able Baker Charlie Company Charles Maxwell is starting a cheesecake...
Mastery Problem: Introduction to Managerial Accounting
Able Baker Charlie Company
Charles Maxwell is starting a cheesecake bakery, Able Baker
Charlie Company, to produce and sell different flavored cheesecakes
to restaurants and the general public. He has just begun his study
of accounting, and is a bit confused about the many types of
reports he has read about and how they will help him run his
business. He asks you to help him clarify what the differences
between managerial accounting and...
Mastery Problem: Introduction to Managerial Accounting Able Baker Charlie Company Charles Maxwell is starting a cheesecake...
Mastery Problem: Introduction to Managerial Accounting
Able Baker Charlie Company
Charles Maxwell is starting a cheesecake bakery, Able Baker
Charlie Company, to produce and sell different flavored cheesecakes
to restaurants and the general public. He has just begun his study
of accounting, and is a bit confused about the many types of
reports he has read about and how they will help him run his
business. He asks you to help him clarify what the differences
between managerial accounting and...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- 1: Competency framework usage is the modern best practice in management. What is meant by competency...
- A 19.34 g mixture of sugar (C12H22O11) and table salt (NaCl) is dissolved in 231 g...
- Young and Company claims that its pressurized diving bell will, on average, maintain its integrity to...
- 1) Alternative compiled code sequence using instructions in classes A, B, C. What is the average...
- An asset is purchased on January 1 for $48,700. It is expected to have a useful...
- Do we have any online or offline tool to convert c and cpp programs into MIPS...
- -what is the pH of HCl 0,1M and NaCl 0,1M mixed together solution? -What is the...
ADVERTISEMENT