. Use the following information regarding an equal-weighted equity index and assume that all dividend payments...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
. Use the following information regarding an equal-weighted equity index and assume that all dividend payments are made at the end of the year and are reinvested in the stock that paid the dividend. Price at the End of 2021 $25 $50 $31.25 $100 $0.50 Note: The dollar value of the index on December 31, 2021 is $10,000 and using a divisor of 100, the index level equals 100. Security A Price at the End of 2022 $26 $45 $36 $135 B с D Dividends per Share $0.50 $0.20 $0.40 The weight of Security B in the index on December 31, 2022 with dividends reinvested and before rebalancing is closest to: The total return on the index referenced in the previous question for the year 2022 is closest to: . Use the following information regarding an equal-weighted equity index and assume that all dividend payments are made at the end of the year and are reinvested in the stock that paid the dividend. Price at the End of 2021 $25 $50 $31.25 $100 $0.50 Note: The dollar value of the index on December 31, 2021 is $10,000 and using a divisor of 100, the index level equals 100. Security A Price at the End of 2022 $26 $45 $36 $135 B с D Dividends per Share $0.50 $0.20 $0.40 The weight of Security B in the index on December 31, 2022 with dividends reinvested and before rebalancing is closest to: The total return on the index referenced in the previous question for the year 2022 is closest to:
Expert Answer:
Answer rating: 100% (QA)
To calculate the weight of Security B in the index on December 31 2022 with dividends reinvested and before rebalancing we need to consider the market ... View the full answer
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1337614689
9th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Posted Date:
Students also viewed these finance questions
-
Pina Colada Inc. had beginning inventory of $21,000 at cost and $30,400 at retail. Net purchases were $156,399 at cost and $223,000 at retail. Net markups were $10,700, net markdowns were $7,000, and...
-
Identify three (3) of the MOST IMPORTANT factors that you believe inhibit healthcare quality improvement. Explain how the factors you selected inhibit healthcare quality improvement. Describe actions...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
A monatomic ideal gas that is initially at a pressure of 1.50 X 105 Pa and has a volume of 0.0800 m' is compressed adiabatically to a volume of 0.0400 m3. (a) What is the final pressure? (b) How much...
-
Given the information below, calculate the net asset value for the New Empire small-cap mutual fund. Total assets.............................................$380,000,000 Total...
-
Adama Company incurred the following costs. Instructions Indicate to which account Adama would debit each of the costs. 5,000 1. Sales tax on factory machinery purchased 2. Painting of and lettering...
-
How should a capital expenditure be recorded? a. Debit capital b. Debit an expense C. Debit a liability d. Debit an asset
-
The following data relate to the operations of Slick Software, Inc., during 2018. Continuing operations: Net...
-
A) You want to earn 15.8% p.a in order to satisfy your capital providers. If a 91 day T-Bill has a face value of R 1000. What is the price that you will pay for the T-Bill in order to satisfy your...
-
Bottle-Up Inc., was organized on January 7, 2008, and made its S election on January 24, 2008. The necessary consents to the election were filed in a timely manner. Its address is 1234 Hill Street,...
-
Recruitment and selection is a practice which is considered by organization, describe how an organization or a Human Resource Manager can make this practice strategically strong to gain the best...
-
1. Sam saw his good friend Nick at the bar on a Friday night. Nick was so drunk, that he did not know the nature and consequences of his actions. While they were at the bar, Nick signed a contract...
-
Complete the statement of sources and uses of cash from the following entries: Net income Dividends Additions to inventory $ 2,900 800 260 Additions to receivables 290 Depreciation 230 Reduction in...
-
The Lewis Law Firm is a small legal practice that provides family law services. Lewis uses a normal cost accounting system to track service costs to the income statement, and has the following...
-
X Corp. adopts a plan of complete liquidation. It distributes land held as an investment to its shareholders that has a fair market value of $300,000 and an adjusted basis of $200,000. If the land is...
-
Alexei is a permanent resident (PR) who was convicted of armed robbery. He obtained PR via family sponsorship at a young age. Removal order 36(1)(a) was issued by the ID. There is a removal order...
-
What is Skin Effect?
-
You are maintaining a subsidiary ledger account for Police-Training Expenditures for 2013. The following columns are used: Inventory purchases are initially recorded as expenditures. Record the...
-
All leases for financial reporting purposes are treated as either capital (finance) leases or operating leases. The effects of the two reporting techniques on the financial statements differ...
-
Alpha Computer Systems (ACS) designs, manufactures, sells, and services networked computer systems; associated peripheral equipment; and related network, communications, and software products....
-
Exhibit 5.23 presents selected financial data for The Tribune Company and The Washington Post Company for fiscal 2006 and 2007. The Washington Post Company is an education and media company. It owns,...
-
The following table is a life table, reproduced from the chapter introduction. With an understanding of some basic concepts of probability, one can use the life table to compute the probability that...
-
In Example 5.4, what is the probability that the oldest child and the youngest child are of the same gender? Example 5.4 Computing probabilities A family has three children. Denoting a boy by B and a...
-
A quiz consists of three truefalse questions and two multiple-choice questions with five choices each. How many different sets of answers are there?
Study smarter with the SolutionInn App