Question: Consider the following security information for four securities making up an index: What is the change in the value of the index from Time =

Consider the following security information for four securities making up an index:

What is the change in the value of the index from Time = 0 to Time = 1 if the index is calculated using a value-weighted arithmetic mean?

eBay, Inc., went public in September of 1998. The following information on shares outstanding was listed in the final prospectus filed with the SEC.
In the IPO, eBay issued 3,500,000 new shares. The initial price to the public was $18.00 per share. The final first day closing price was$44.88.

Price Price Shares Security Time-0 Time 1 Outstanding 13 25 30 50 million 120 million 75 million 35

Step by Step Solution

★★★★★

3.58 Rating (176 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

For a valueweighted arithmetic mean the change is calculated as follows ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

195-B-F-F-M (1399).docx

120 KBs Word File

Students Have Also Explored These Related Finance Questions!

What is a change in accounting policy? Distinguish between voluntary and mandatory changes.

What is the change in entropy of mercury vapor (Lv = 2.7 x 105 J/kg) when 0.50 kg of it condenses to a liquid at its boiling point of 357 oC?

What is the change in wavelength when monochromatic X-rays are scattered by electrons ons through an angle of 30?

Consider the following security information for four securities making up an index. What is the change in the value of the index from t = 0 to t = 1 if the index is calculated using a value-weighted...

Consider the following security information for four securities making up an index: Price Shares Security Time=0 Time=l Outstanding 1 8 13 20 million 2 22 25 50 million 3 35 30 120 million 4 50 55 75...

Consider the following security information for four securities making up an index: Security Price Shares Outstanding time = 0 time = 1 1 6 8 20 million 2 20 25 50 million 3 35 27 120 million 4 50 55...

14. Consider the following security information for 4 securities making up an index: Price Shares Security time = 0 time = 1 Outstanding 8 13 20 million 2 22 25 50 million 3 35 30 120 million 4 50 55...

14. Consider the following security information for four securities making up an indew What is the change in the value of the index from Time 0 to Time 1 if the index is calculated using a...

Consider the following security information for four securities making up an index: What is the change in the value of the index from Time 5 0 to Time 5 1 if the index is calculated using a...

Marple Associates is a consulting firm that specializes in information systems for construction and landscaping companies. The firm has two officesone in Houston and one in Dallas. The firm...

ABC bought a piece of land in a highly developing area for a purchase price of P4,000,000. Directly attributable costs incurred was P250,000. If ABC were to resell this land now, it would incur cost...

the number of common shares authorized is almost always greater than the number of shares issued. Group startsTrue or False True, unselectedFalse, unselected

Sharon Peters, a friend of yours, asked you to sit in on a dry run of her busi- ness plan presentation. You know that Sharon is looking for $250,000 to launch her venture. At the end of the...

What is market timing when referred to by mutual funds?

On January 1, the shares and prices for a mutual fund at 4:00 PM are as follows: Stock 3 announces record earnings, and the price of stock 3 jumps to $32.44 in after-market trading. If the fund...

A mutual fund charges a 5% upfront load plus reports an expense ratio of 1.34%. If an investor plans on holding a fund for 30 years, what is the average annual fee, as a percent, paid by the...

1) This Question: 4 pts 11 of 11 (1 complete) This Test: 50 pts possible A headline read, "More Than Half of Americans Say Federal Taxes Too High." The headline was based on a random sample of 1155...

I pick a whole number between at random 1 and 10 (1, 2, 3, ..., 9, 10). Let event A be that I pick a 1, 2 or 3. Let event B be that I pick an even number and let event C be that the number is a...

6. Merger analysis - Free cash flow to equity (FCFE) approach Consider the following acquisition data regarding Scorecard Corp. and Rapid Route Logistics: Scorecard Corp. is considering an...