Question

In: Finance

Calculate a Standard& Poor's Index for days 1 through 5 using a beginning index value of 10. Do not round intermediate calculations

Problem 4-05


PRICE
SHARES
CompanyABC
ABC
Day 1$14
$25
$51
550
380
280
Day 2  11
  21
  59
550
380
280
Day 3  13
  50
  52
550
190a
280
Day 4  10
  51
  25
550
190
560b
Day 5  12
  50
  26
550
190
560
aSplit at close of day 2.
bSplit at close of day 3.

Calculate a Standard& Poor's Index for days 1 through 5 using a beginning index value of 10. Do not round intermediate calculations. Round your answers to three decimal places.

Day 1:

Day 2:

Day 3:

Day 4:

Day 5:

Solutions

Expert Solution

Index = Current Market capital * Previous day index / Previous day market capital

And there is no impact of split shares because market capital is calculated by numbers of shares*market price


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