Question: Please help me answer these two questions Question 2: Consider three stocks in the following table. Prepsents price at time t, and Qt represents shars

 Please help me answer these two questions Question 2: Consider three

stocks in the following table. Prepsents price at time t, and QtPlease help me answer these two questions

Question 2: Consider three stocks in the following table. Prepsents price at time t, and Qt represents shars outstanding at time t. Qo P1 P. A $ 150.00 B$ 65.00 C$ 200.00 100 200 400 $ 160.00 $ 60.00 $ 214.00 Q1 100 200 400 a. Calculate the rate of return on the price weighted index of the three stocks from t=0 to t=1. (3 points) Index Value at time (0) = Index Value at time (1) = 138.3333333 91.33333333 Rate of return = =(C12-C11)-1 b. If stock C has a two-for-one stock split at t=1, what should be the new divisor at end of period t = 1? (3 points) Index Value piror to stock split = Index Value after stock split = New divisor = ? ? ? Question 1: A municipal bond has a yield of 5%. Please fill in the equivalent taxable yields of the municipal bond based on investor's different tax bracket in the following table: (4 points) Municipal bond yield = 5% a Tax bracket 0% 10% 20% 30% Equivalent taxable yield 0.05 6% 0.0625 7% b. C. d

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!