The following three defense stocks are to be combined into a stock index in January 2019...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance). Suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2020. Douglas McDonnell Dynamics General International Rockwell New divisor Shares (millions) 430 535 210 Rate of return 1/1/19 $108 38 67 % Price a. What is the new divisor for the index? (Do not round intermediate calculations. Round your answer to 3 decimal places.) 1/1/20 $114 34 56 1/1/21 $131 48 70 b. Calculate the rate of return on the index for the year ending December 31, 2020, if Douglas McDonnell's share price on January 1, 2021, is $41.08 per share. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance). Suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2020. Douglas McDonnell Dynamics General International Rockwell New divisor Shares (millions) 430 535 210 Rate of return 1/1/19 $108 38 67 % Price a. What is the new divisor for the index? (Do not round intermediate calculations. Round your answer to 3 decimal places.) 1/1/20 $114 34 56 1/1/21 $131 48 70 b. Calculate the rate of return on the index for the year ending December 31, 2020, if Douglas McDonnell's share price on January 1, 2021, is $41.08 per share. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Expert Answer:
Answer rating: 100% (QA)
a What is the new divisor for the index Index value on January ... View the full answer
Related Book For
Fundamentals of Investments, Valuation and Management
ISBN: 978-1259720697
8th edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
Posted Date:
Students also viewed these accounting questions
-
Consider Figure 6.33. Now we replace the router between subnets I and 2 with a switch SI, and label the router between subnets 2 and 3 as Rl. Figure 6.33 a. Consider sending an IP data-gram from Host...
-
Suppose the following three defense stocks are to be combined into a stock index in January 2007 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her...
-
Suppose the following three defense stocks are to be combined into a stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her...
-
Michael Mayfield, the president of Mendo Mill and Lumber Co., in California, received a notice of a legal claim from Edward Starski. The claim alleged that a stack of lumber had fallen on a customer...
-
1. What are the characteristics of an agent-based simulation model? 2. List the various factors that were fed into the agent-based simulation model described in the case. 3. Elaborate on the benefits...
-
(a) What condition would have to be met so that the motion of a \(135 \mathrm{~g}\) baseball would be inconsistent with a classical path? Is this a potentially feasible condition? (b) If we could...
-
John and Jennifer Margeson entered into a contract to sell a weight-loss franchise business called Inches-A-Weigh to Theresa Artis. The parties memorialized their agreement in an Asset Purchase...
-
Emily Valley is a licensed dentist. During the first month of the operation of her business, the following events and transactions occurred. April 1 Invested $20,000 cash in her business. 1 Hired a...
-
Downsizing 1. In the trailer, Matt Damon and Kirsten Wigg are told that their $52,000 will be worth 12.5 million dollars in Leisure Land. Use a proportion to calculate how much $100,000 would be...
-
Open the Orders Solution.sln file contained in the VB2017\Chap03\Orders Solution folder. The interface provides a button for adding the number ordered to the total ordered, and a button for...
-
Consider a student loan of $10,000 at a fixed APR of 10% for 5 years. a. Calculate the monthly payment. b. Determine the total amount paid over the term of the loan. c. Of the total amount paid, what...
-
Policy comparison: subsidies and price ceilings The market for food is depicted in the graph below, with the relative elasticities of supply and demand as discussed last class. In attempts to keep...
-
Suppose you will conduct a study to find out factors (i.e., pays, hours, working conditions, and so forth) that affect job satisfaction, how would you select a sample from college employees at...
-
What was the inventory turnover ratio for the Cheesecake Factory for the fiscal year 2 0 2 2 ?
-
Juan read the article of Dr. Timbreza about different ethical theories. After reading the article, he was convinced that humans only live once. He was convinced that a moral life is a life pursuing...
-
What figure is arrived at when the totals from each section of the statement of cash flows are added together?
-
March 2023. The following is a ummary of ABC farm's balance sheet as at 30 March 2 Assets 3.1.1 3.1.2 Current Intermediate Fixed Total Liabilities Current Intermediate Long term Total Net worth 80...
-
This problem continues the Draper Consulting, Inc., situation from Problem 12-45 of Chapter 12. In October, Draper has the following transactions related to its common shares: Oct 1 Draper...
-
What is the single monthly mortality assuming the conditional prepayment rate is 7 percent?
-
Your portfolio allocates equal amounts to three stocks. All three stocks have the same mean annual return of 14 percent. Annual return standard deviations for these three stocks are 30 percent, 40...
-
Given the information below for StartUp.Com, compute the expected share price at the end of 2017 using price ratio analysis. Year 2016 2015 2013 2014 $ 68.12 Price $ 95.32 $104.18 N/A -3.68 EPS N/A...
-
Discuss the main differences between the traditional and the modern finance paradigm in understanding the behavior of individual investors.
-
Discuss the disposition effect and the proposed explanations for this effect.
-
Define and describe the process of worrying within the finance domain.
Study smarter with the SolutionInn App