Question: Consider the data provided in the table below. Suppose that these three stocks are the components of a price-weighted index (Like the DJIA). What would

Consider the data provided in the table below. Suppose that these three stocks are the components of a price-weighted index (Like the DJIA). What would be the new divisor for day 3 after a 2-1 reverse stock split of Stock A just after the close of trading on day 2? (Report your final answer rounded to three decimal places.) PRICE $ B 21 22 42 43 43 Company A Day 1 14 Day 2 11 Day 3 15 Day 4 15 Day 5 11 aSplit at close of day 2. bSplit at close of day 3. Answer: C 52 54 58 28 29 A 510 510 510 510 510 SHARES B 370 370 185a 185 185 230 230 230 460b 460

Consider the data provided in the table below. Suppose that these three stocks are the components of a price-weighted index (Like the DIIA). What would be the new divisor for day 3 after a 2-1 reverse stock split of Stock A just after the close of trading on day 2

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!

.64 Consider the data provided in the table below. Suppose that these three stocks are the components of a price-weighted index (Like the DJIA). What would be the new divisor for day 3 after a 2-1...

Consider the data provided in the table below. Suppose that these three stocks are the components of a price-weighted index (Like the DJIA). What would be the new divisor for day 3 after a 2-1...

You bought Walmart stock on 0 1 / 0 1 / 2 0 2 4 with the price of $ 5 2 . 2 4 per share. On 1 2 / 3 1 / 2 0 2 4 , its price closes at $ 9 0 . 3 5 , and the recent dividend history of Walmart islisted...

Problem 3-2 Price-Weighted Index Consider a price-weighted index like the DJIA with only 3 stocks: Stock A, Stock B, and Stock C. The original and new prices of these stocks, along with the divisol...

Assume a speculator sold 4,000 shares of a mortgage lender X short at $50 with an initial margin of 60% and subseq maintenance margin call. Price Shares Initial Margin Maintenance $50.00 4,000 60.00%...

Consider a price-weighted index like the DJIA with only 3 stocks: Stock A, Stock B, and Stock C. The original and new prices of these stocks, along with the divisor, are shown in the following table....

19. Consider the three stocks in the following table. Prepresents price at time t, and Q represents shares outstanding at time t. Stock C splits two-for-one in the last period. Po Qo P Q P A 90 100...

Price - Weighted Index. Consider a price - weighted index like the DJIA with only three stocks. If the stock prices are $ 3 0 , $ 5 0 , and $ 7 0 , and the divisor is 0 . 1 8 , what is the index...

Over the last few decades, the size of the foreign exchange market has increased significantly. Explain in detail the factors that has fuelled this growth. Why is the US dollar the most widely used...

List the direct labor variances and briefly describe each.

how do you calculate protective put Required: Note: Use cells A 2 to B 6 from the given information to complete this question. Using the information in the tables above, please calculate the payoffs...

9. (15 points) A company is considering a new project that requires an investment of \$5 million. The project is expected to generate cash flows of $2 million in year 1,$3 million in year 2, and $4...

(Appendices) UNCOLLECTIBLE ACCOUNT EXPENSE: CREDIT SALES METHOD. The Glass House, a glass and china store, sells nearly half its merchandise on credit. During the past 4 years, the following data...

(Appendices) PURCHASES, TRANSPORTATION-IN, AND PURCHASE RETURNS. Alpharack Company sells a line of tennis equipment to retailers. Alpharack uses periodic inventory accounting. Alpharack engaged in...

(Appendices) Economics Select a country with an economic system that is considered communist or socialist. Conduct online research about quality of life, life expectancy rates, tax rates, income and...