Given that you wish to construct a price-weighted index from the following price series: Period 1...
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Given that you wish to construct a price-weighted index from the following price series: Period 1 Period 2 Corporate Event Q₁ Q₂ Stock A Stock B P₁ 4.25 40 4,000,000 25,000 1,000,000 1 for 4 reverse split 50,000 2 for 1 stock split If the divisor of the PWI index in period 1 is "1.1959", the value of the PWI in period 2 is? P₂ 16.5 21.5 Consider the information in the table below on 16/03/2018. Assume these stocks are the components of the stock market indexes (e.g. PWI, EWI or VWI). Stock Price 111.64 1134.42 80.49 75.12 Market Cap (mill) 158,768.04 338616.43 88,184.68 318318.15 Pepsi Co Alphabet Lilly & Co Exon Mobile Calculate the value of a PWI, assuming an index divisor of 3.5940256. + Given that you wish to construct a price-weighted index from the following price series: Period 1 Period 2 Corporate Event Q₁ Q₂ Stock A Stock B P₁ 4.25 40 4,000,000 25,000 1,000,000 1 for 4 reverse split 50,000 2 for 1 stock split If the divisor of the PWI index in period 1 is "1.1959", the value of the PWI in period 2 is? P₂ 16.5 21.5 Consider the information in the table below on 16/03/2018. Assume these stocks are the components of the stock market indexes (e.g. PWI, EWI or VWI). Stock Price 111.64 1134.42 80.49 75.12 Market Cap (mill) 158,768.04 338616.43 88,184.68 318318.15 Pepsi Co Alphabet Lilly & Co Exon Mobile Calculate the value of a PWI, assuming an index divisor of 3.5940256. +
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To calculate the Price Weighted Index PWI for period 2 we need to take into account the changes in stock prices as well as the corporate events such a... View the full answer
Related Book For
Fundamentals of Corporate Finance
ISBN: 978-1259024962
6th Canadian edition
Authors: Richard Brealey, Stewart Myers, Alan Marcus, Devashis Mitra, Elizabeth Maynes, William Lim
Posted Date:
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