Use data from the table below to answer this question: Day 0 Day 1 Price #shares...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Use data from the table below to answer this question: Day 0 Day 1 Price #shares Price #shares Stock A B C D 10 21 89 42 21,000 18,000 7,000 12,000 7 21,000 8 18,000 151 7,000 55 12,000 a. (8 points) The price-weighted index on day 0 is computed with only the three stocks A, B and C. The index value on day 0 is 100. i. Compute the divisor on day 0. ii. What is the return on the price-weighted index on day 1? iii. Stock C is split 4-for-1 after the close of Day 1. What is the divisor for the price-weighted index after the split? iv. After the close of market on Day 1, Stock C is replaced by Stock D in the price-weighted index, and the new index is computed with only Stocks A, B and D. Compute the new divisor and the index value after this change to the index composition. Use data from the table below to answer this question: Day 0 Day 1 Price #shares Price #shares Stock A B C D 10 21 89 42 21,000 18,000 7,000 12,000 7 21,000 8 18,000 151 7,000 55 12,000 a. (8 points) The price-weighted index on day 0 is computed with only the three stocks A, B and C. The index value on day 0 is 100. i. Compute the divisor on day 0. ii. What is the return on the price-weighted index on day 1? iii. Stock C is split 4-for-1 after the close of Day 1. What is the divisor for the price-weighted index after the split? iv. After the close of market on Day 1, Stock C is replaced by Stock D in the price-weighted index, and the new index is computed with only Stocks A, B and D. Compute the new divisor and the index value after this change to the index composition.
Expert Answer:
Answer rating: 100% (QA)
a 8 points The priceweighted index on day 0 is computed with only the three stocks A B and C The index value on day 0 is 100 i Compute the divisor on ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these finance questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
-
Table 2-5 Estonia Finland One Cell Phone 40 hours 16 hours Lumber (per board foot) 8 hours 4 hours Table 2-5 shows the number of labor hours required to produce a cell phone and a board foot of...
-
(a) Use differentials to find a formula for the approximate volume of a thin cylindrical shell with height , inner radius , and thickness r. (b) What is the error involved in using the formula from...
-
Consider a series RLC circuit having the following circuit parameters: R = 200 , L = 663 mH, and C = 26.5 F. The applied voltage has an amplitude of 50.0 V and a frequency of 60.0 Hz. Find the...
-
Indicate whether each of the following statements constitutes a potential advantage (A), disadvantage (D), or neither (N) of using transfer prices for support department costs. a. Requires additional...
-
Stewarts Scooters plans to sell a standard scooter for $120 and a chrome scooter for $160. Stewarts purchases the standard scooter for $30 and the chrome scooter for $40. Stewarts expects to sell one...
-
Olsen Outfitters Inc. believes that its optimal capital structure consists of 5 5 % common equity and 4 5 % debt, and its tax rate is 2 5 % . Olsen must raise additional capital to fund its upcoming...
-
Wolsey Industries Inc. expects to maintain the same inventories at the end of 20Y3 as at the beginning of the year. The total of all production costs for the year is therefore assumed to be equal to...
-
16. Explain how to correctly tension belts and chains 17. Describe the identification and application of different types of locking devices 18. Describe the methods of checking that removed...
-
Why is it important that misstatements be carefully defined when planning a sample?
-
How does an auditor gather information on an organizations control environment? How is the information on the clients control environment documented?
-
What types of events do sport managers plan?
-
Do the professional standards require or support the use of nonstatistical sampling for substantive testing? Explain the circumstances in which nonstatistical sampling might be used.
-
Which of the following is correct regarding the responsibilities for the quality of accounting principles used in a companys annual financial statements? I. Financial statements are the...
-
This is for my Sociology 340: Juvenile Delinquency Discussion Post: The U.S. Supreme Court has determined which constitutional rights are afforded to juveniles, including how the Fifth Amendment and...
-
Write the given system without the use of matrices. D) - ()- d (x sin t + 8 (2+ 1)
-
a. Wilson filed his individual tax return on the original due date, but failed to pay $700 in taxes that were due with the return. If Wilson pays the taxes exactly 2 months late, calculate the amount...
-
Jason and Mary Wells, friends of yours, were married on December 30, 2012. They know you are studying taxes and have come to you with a question concerning their filing status. Jason and Mary would...
-
John Williams (age 42) is a single taxpayer, and he lives at 1324 Forest Dr., Reno, NV 89501. His Social Security number is 555-94-9358. John's earnings and withholdings as the manager of a local...
-
A materials purchases journal, a cash payments journal, and a general journal for Vanyo, Inc., a manufacturer of cardboard boxes, are provided in the Working Papers. Work independently to complete...
-
Work sheets for Bedthings, Inc., a manufacturing firm, are included in the Working Papers. Use the information for April from Work Together 20-2. Work independently to complete the following...
-
Perry, Inc., completed the following factory cost transactions during August of the current year: Instructions: 1. Journalize the transactions. Use page 4 of a materials purchases journal and page 8...
Study smarter with the SolutionInn App