Question: answer all parts please 1. (2 points) Consider the data in the following table for a hypothetical two-stock version of the Dow Jones Industrial Average.

answer all parts please

1. (2 points) Consider the data in the following table for a hypothetical two-stock version of the Dow Jones Industrial Average. Stock Initial Price Final Price Shares (millions) ABC $30 $40 20 XYZ 70 60 1 a) Calculate the percentage change in the index value. (0.5 point) b) Suppose firm XYZ from part (a) were to split two for one during the period (price drops to $35 immediately after the split and the new final price is $30). Calculate the percentage change in the index value. (1 point) c) If this was for S&P500-type index, what is the percentage change in the index value? Is it affected by the stock split of firm XYZ? (0.5 point)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

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

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

4. Consider the data in Table 1 for a hypothetical two-stock version of the Dow Jones Average. Table 1 Suppose XYZ were to split two for one so that its share price fell to $50. We would not want the...

Supply the answers to the incorrect answers. Please write the question # and the question part (ex. 1a, 1b, 2a, 2b, etc...). 1. The Dow Jones Industrial Average (DJIA) and the Standard & Poor's 500...

PLEASE SHOW ALL WORK Consider the data in the following table for a hypothetical three-stock version of the Dow Jones Industrial Average. Stock ABC Initial Price $30 20 70 Final Price $40 35 60...

Introduction to Business FINAL PROJECT Your group has just received $100,000 to invest in common stock. Select one stock for your portfolio from the Dow Jones Industrial Average stock list...

I'm lost. Any help with any of these questions would be very much appreciated Fin 3090 HW1 1. Name: ___Joshua Lambert_________________ Which of the following statements is CORRECT? a. Sole...

I need some help with both Case 1 and Case 2 of this assignment. See attached document for full assignment. Here is an excerpt from each. Case 1: Purchase Point Media Corporation (PPMC) Media...

I need help with my assignment for accounting. It is to do with report analysis and hypothesis testing. A good knowledge of Excel is required for this task. Analytical review Golden Big Burgers Part...

ce Portal-Serv... Graham Investment Criteria Spresdsheet Tools View Be careful-files from the Internet can contain viruses. Unless you need to edit, it's safer to stay in Prote CTED VIEW Graham...

INSTRUCTIONS: 1. Calculate the Correlation Matrix for (Compute a Correlation Table in Excel) - DJIA - Nasdaq - 10-Yr-T-Note 2. Write the analysis according to the three charts below: - The...

Prepare a three (3) year forecast of estimated future cash flows for you company and give valid economic/business reasons for your projections. This means you will have a statement of incremental...

Can a CPA be independent without being objective? Why or why not? Can a CPA be objective without being independent? Why or why not? Does your answer matter assuming you only provide only non auditing...

Consider the following three data sets. a. Assuming that each of these data sets is sample data, compute the standard deviations. (Round your final answers to two decimal places.) b. Assuming that...

Local anesthetics should be used with caution in children younger than: 1 2 years 4 years 1 4 years 8 years

Questions Q1. Write a Python program to retrieve the first and last colors from the following list: color_list = ["red", "green", "white", "blue", "black") Q2. Given the following dictionary,...