Question
In: Finance
Consider the following stock price and shares outstandinginformation.DECEMBER 31, Year 1DECEMBER 31, Year...
Consider the following stock price and shares outstanding information.
| DECEMBER 31, Year 1 | DECEMBER 31, Year 2 | |||||||
Price | Shares Outstanding | Price | Shares Outstanding | |||||
| Stock K | $18 | 109,000,000 | $33 | 109,000,000 | ||||
| Stock M | 74 | 2,300,000 | 49 | 4,600,000a | ||||
| Stock R | 35 | 26,000,000 | 39 | 26,000,000 | ||||
| aStock split two-for-one during the year. | ||||||||
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:
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: %
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.
%
Solutions
jeff jeffy answered 2 years agoRelated Solutions
Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 DECEMBER 31, Year...
Consider the following stock price and shares outstanding
information. DECEMBER 31, Year 1 DECEMBER 31, Year 2 Price Shares
Outstanding Price Shares Outstanding Stock K $22 108,000,000 $33
108,000,000 Stock M 86 2,200,000 46 4,400,000a Stock R 37
21,000,000 42 21,000,000 aStock split two-for-one during the year.
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...
Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 DECEMBER 31, Year...
Consider the following stock price and shares outstanding
information. DECEMBER 31, Year 1 DECEMBER 31, Year 2 Price Shares
Outstanding Price Shares Outstanding Stock K $22 100,000,000 $30
100,000,000 Stock M 84 2,400,000 46 4,800,000a Stock R 39
24,000,000 42 24,000,000 aStock split two-for-one during the year.
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...
Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 DECEMBER 31, Year...
Consider the following stock price and shares outstanding
information.
DECEMBER 31, Year 1
DECEMBER 31, Year 2
Price
Shares
Outstanding
Price
Shares
Outstanding
Stock K
$22
108,000,000
$33
108,000,000
Stock M
74
2,100,000
43
4,200,000a
Stock R
40
20,000,000
43
20,000,000
aStock split two-for-one during the
year.
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...
Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 DECEMBER 31, Year...
Consider the following stock price and shares outstanding
information.
DECEMBER 31, Year 1
DECEMBER 31, Year 2
Price
Shares
Outstanding
Price
Shares
Outstanding
Stock K
$23
110,000,000
$34
110,000,000
Stock M
82
2,100,000
50
4,200,000a
Stock R
36
29,000,000
38
29,000,000
aStock split two-for-one during the
year.
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...
Consider the following stock price and shares outstanding information. Consider the following stock price and shares...
Consider the following stock price and shares outstanding
information.
Consider the following stock price and shares outstanding
information.
DECEMBER 31, Year 1
DECEMBER 31, Year 2
Price
Shares
Outstanding
Price
Shares
Outstanding
Stock K
$19
100,000,000
$28
100,000,000
Stock M
76
2,400,000
40
4,800,000a
Stock R
44
25,000,000
49
25,000,000
aStock split two-for-one during the
year.
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...
Consider the following information on the stock market. Company Shares Outstanding Price, beginning of year Price,...
Consider the following information on
the stock market.
Company
Shares Outstanding
Price, beginning
of year
Price, end
of year
A
200
$58
$94
B
500
$20
$25
C
1000
$70
$6
Compute a price-weighted stock price index for the beginning of
the year and the end of the year. What is the percentage
change?
Compute a value-weighted stock price index for the beginning of
the year and the end of the year. What is the percentage
change?
Consider the following information on the stock market. Company Shares Outstanding Price, beginning of year Price,...
Consider the following information on
the stock market.
Company
Shares Outstanding
Price, beginning
of year
Price, end
of year
A
200
$58
$94
B
500
$20
$25
C
1000
$70
$6
Compute a price-weighted stock price index for the beginning of
the year and the end of the year. What is the percentage
change?
Compute a value-weighted stock price index for the beginning of
the year and the end of the year. What is the percentage
change?
Consider the following stock information (price and number of shares outstanding): Stock G Stock A Stock...
Consider the following stock information (price and number of
shares outstanding):
Stock G
Stock A
Stock Q
P0
$70
$85
$105
Q0
200
500
300
P1
$84
$81
$110
Q1
200
500
300
P2
$20
$85
$24
Q2
800
500
1500
1. Based on the information given, for a price-weighted index of
the three stocks calculate:
1.1. the rate of return for the first period (t=0 to t=1).
Interpret your answer.
1.2. the value of the divisor in the second...
Consider the following limit order book for a share of stock. Bid Ask Price Shares Price...
Consider the following limit order book for a share of
stock.
Bid
Ask
Price
Shares
Price
Shares
$79.75
500
$79.80
500
79.70
900
79.85
400
79.65
700
79.90
900
79.60
1000
79.95
700
78.65
600
a. If a market sell order for 1200 shares comes
in, at what price(s) will it be filled? from low to high
b. Immediately after the order in a) is executed,
what is the bid-ask spread of the stock? (Keep two decimal
places.)
24. Consider the following three stocks: stock price number of shares outstanding Stock A $40 200...
24. Consider the following three stocks:
stock price number of shares outstanding
Stock A $40 200
Stock A $70 500
Stock A $10 600
Assume at these prices that the value-weighted index constructed
with the three stocks is
490. What would the index be if stock B is split 2 for 1 and stock
C 4 for 1?
A) 355 B) 430 C) 1000 D) 490 E) 265
34. A 5.5% 20-year municipal bond is currently priced to yield
7.2%....
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