Question: I need help understanding these badly! With everything I am trying to do this online homework and it's kicking my butt! Please help me understand
I need help understanding these badly! With everything I am trying to do this online homework and it's kicking my butt! Please help me understand them!
1: Assume the following four companies are used in computing an index (there have been no stock splits during this time).
| Corporation | Shares Outstanding | Market Price (Base Period Jan. 1, 1977) | Market Price (Current Period Dec. 31, 2004) |
| Reese | 4,000 | $2 | $14 |
| Robinson | 16,000 | $8 | 22 |
| Snider | 6,000 | $9 | 15 |
| Hodges | 40,000 | $10 | 20 |
If the index is price-weighted, what will be the value of the index on Dec. 31, 2004? (Keep 0 decimal place)
2: Assume the following four companies are used in computing an index (there have been no stock splits during this time).
| Corporation | Shares Outstanding | Market Price (Base Period Jan. 1, 1977) | Market Price (Current Period Dec. 31, 2004) |
| Reese | 4,000 | $2 | $14 |
| Robinson | 16,000 | $2 | 21 |
| Snider | 6,000 | $9 | 15 |
| Hodges | 40,000 | $10 | 20 |
If the index is value-weighted, what will be the value of the index on Dec. 31, 2004? (Keep 0 decimal place)
3: You buy 100 shares of stock at $40 per share on margin of 40%. If the price of the stock changes to $37 per share, what is your percentage gain in equity? Disregard interest costs. (Keep 4 decimal places)
4: An investor is in a 35% tax bracket for normal (ordinary) income. During the course of the year, he received $3,638 in dividends and had $3,892 capital gains on stock he had held for 19 months. How much will his total tax be on this investment-related income? (Keep 2 decimal places) asked me to edit but this is all the information we have been given.
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