Question: Problem 2-19 Consider the three stocks in the following table. Pe represents price at time t, and represents shares outstanding at time t. Stock C
Problem 2-19 Consider the three stocks in the following table. Pe represents price at time t, and represents shares outstanding at time t. Stock C splits two-for-one in the last period. Pi Po 33 43 20 100 200 200 01 100 200 200 D P2 88 38 68 22 100 200 400 36 96 * at a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (t -0 to t = 1). (Do not round intermediate calculations. Round your answer to 2 decimal places.) nices Rate of return 0.43% b. What will be the divisor for the price weighted Index in year 2? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Divisor c. Calculate the rate of return of the price-weighted index for the second period (* 1to = 2). Rate of return
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