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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 M74
2,300,000
49
4,600,000a
Stock R35
26,000,000
39
26,000,000
aStock split two-for-one during the year.
  1. 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:

  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:   %

  3. 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.

      %

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