Question 2

The question below is based on the Khan Academy's video on "What it means to buy a company stock" from Module 2.

The following data is gathered for 'The Procter & Gamble Company '.

Follow the same steps shown in the video.

The Procter & Gamble Company
151,383	Total Assets (in $ billions)
70,845	Total Current Liabilities (in $ billions)
35,650	Long term debt (less current maturities) (in $ billions)
2,400	Total number of Shares Outstanding (in millions)

How much is this company's stock value?

Enter your answer in the following format: 12.34 Hint: Answer is between 16.83 and 21.32

Question 7

A treasury bill (money market) has the following characteristics: Currently trading at $9,780, Face value (or PAR) of $10,000, matures in 90 days.

How much is the BEY (Bond Equivalent Yield)?

Enter your answer in the following format: 0.1234 Hint: Answer is between 0.0785 and 0.1022

Question 8

You are trying to create a stock index using three stocks. To recap, DJIA is a price-weighted index and S&P500 is a value-weighted index.

Each stock's data at t=0 (begin of day) and t=1 (end of day) is provided below.

Notice that Stock B is split 2 for 1. So, its price went down from $50 to $25, while the quantity went up from 80 to 160.

Stock	Price (t=0)	Quantity (t=0)	Price (t=1)	Quantity (t=1)
A	$10	40	$15	40
B	$50	80	$25	160
C	$140	50	$130	50

If the Value-Weighted (VW) Index Value at t=0 is 100, what is the VW value at t=1?

Enter your answer in the following format: 123.45 Hint: Answer is between 87.63 and 111.97

Question 11

You are trying to create a stock index using three stocks. To recap, DJIA is a price-weighted index and S&P500 is a value-weighted index.

Each stock's data at t=0 (begin of day) and t=1 (end of day) is provided below.

Notice that Stock B is split 2 for 1. So, its price went down from $50 to $25, while the quantity went up from 80 to 160.

Stock	Price (t=0)	Quantity (t=0)	Price (t=1)	Quantity (t=1)
A	$10	40	$15	40
B	$50	80	$25	160
C	$140	50	$130	50

How much is the denominator used to compute the Price-Weighted index at t=1?

Enter your answer in the following format: 1.23 Hint: Answer is between 2.47 and 2.94

Question 13

A treasury bill (money market) has the following characteristics: Currently trading at $9,780, Face value (or PAR) of $10,000, matures in 90 days.

How much is the EAY (Effective Annual Yield)?

Enter your answer in the following format: 0.1234 Hint: Answer is between 0.0831 and 0.1039