The following three defense stocks are to be combined into a stock index in January 2019...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance). Suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2020. Douglas McDonnell Dynamics General International Rockwell New divisor Shares (millions) 430 535 210 Rate of return 1/1/19 $108 38 67 % Price a. What is the new divisor for the index? (Do not round intermediate calculations. Round your answer to 3 decimal places.) 1/1/20 $114 34 56 1/1/21 $131 48 70 b. Calculate the rate of return on the index for the year ending December 31, 2020, if Douglas McDonnell's share price on January 1, 2021, is $41.08 per share. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance). Suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2020. Douglas McDonnell Dynamics General International Rockwell New divisor Shares (millions) 430 535 210 Rate of return 1/1/19 $108 38 67 % Price a. What is the new divisor for the index? (Do not round intermediate calculations. Round your answer to 3 decimal places.) 1/1/20 $114 34 56 1/1/21 $131 48 70 b. Calculate the rate of return on the index for the year ending December 31, 2020, if Douglas McDonnell's share price on January 1, 2021, is $41.08 per share. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Expert Answer:
Answer rating: 100% (QA)
a What is the new divisor for the index Index value on January ... View the full answer
Related Book For
Fundamentals of Investments, Valuation and Management
ISBN: 978-1259720697
8th edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
Posted Date:
Students also viewed these accounting questions
-
Consider Figure 6.33. Now we replace the router between subnets I and 2 with a switch SI, and label the router between subnets 2 and 3 as Rl. Figure 6.33 a. Consider sending an IP data-gram from Host...
-
Suppose the following three defense stocks are to be combined into a stock index in January 2007 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her...
-
Suppose the following three defense stocks are to be combined into a stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her...
-
Michael Mayfield, the president of Mendo Mill and Lumber Co., in California, received a notice of a legal claim from Edward Starski. The claim alleged that a stack of lumber had fallen on a customer...
-
Create an outline of an IT performance measurement plan including the key components.
-
What is the order of the highest spatial derivative in the wave equation? What is the order of the highest spatial derivative of the beam equation?
-
Newmark method a. Assumes that acceleration varies linearly between \(t_{i}\) and \(t_{i}+\theta \Delta t ; \theta \geq 1\) b. Assumes that acceleration varies linearly between \(t_{i}\) and...
-
During the first month of operations, Wortham Services, Inc., completed the following transactions: Jan 2 Wortham Services received $65,000 cash and issued common stock to the stockholders. 3...
-
John Lewis (1940-2020) was a leader in the civil rights movement. He participated in the Nashville sit-ins and the Freedom Rides and was the chairman of the Student Nonviolent Coordinating Committee...
-
You are a security analyst responsible for following Jaguar's stock after it floats. (Assume the company had 100 million shares outstanding.) What is your estimate of Jaguar's stock price given a 10%...
-
c)A mixture of benzene and toluene containing 40 mole per cent benzene is to be separated to give a product containing 90 mole per cent benzene at the top, and a bottom product containing not more...
-
Jack Jones is a junior management accountant at HJK Ltd. Jack is given the task of compiling a cost-benefit analysis report on whether the company should purchase an expensive new machine from CVB...
-
1. What are the four AICPA objectives of internal control? 2. What is segregation of duties? 3. What are three procedures to safeguard inventory? 4. Listed below are several control procedures used...
-
You are evaluating orders from two new customers, but you will only be able to accept one of the orders without increasing your fixed costs. Management has directed you to choose the one that is most...
-
What is the definition of a regression analysis, and why would a researcher be interested in using this type of analysis? Share at least three specific real-world business examples where a regression...
-
According to Erikson's theory, what stage are you currently in? Explain some of the milestones within this stage. How does a person move successfully through each stage? According to Horney's theory,...
-
Your investment management firm, Albers Investment Group, is considering making a significant investment in Nike, Inc. (NYSE: NKE) and is currently in the process of evaluating this potential...
-
The vapor pressure of the liquid NH, is measured at different temperatures. The following vapor pressure data are obtained. Temperature, K P, mmHg 217.1 223.4 234.7 588.1 Calculate the enthalpy of...
-
What is the single monthly mortality assuming the conditional prepayment rate is 7 percent?
-
Your portfolio allocates equal amounts to three stocks. All three stocks have the same mean annual return of 14 percent. Annual return standard deviations for these three stocks are 30 percent, 40...
-
Given the information below for StartUp.Com, compute the expected share price at the end of 2017 using price ratio analysis. Year 2016 2015 2013 2014 $ 68.12 Price $ 95.32 $104.18 N/A -3.68 EPS N/A...
-
Is the nature of the coupling dependent on the coordinates used?
-
How many degrees of freedom does an airplane in flight have if it is treated as (a) a rigid body, and (b) an elastic body?
-
What are principal coordinates? What is their use?
Study smarter with the SolutionInn App