Question: Assume A Corp, B Corp, and C Corp are components of the Dow Jones Industrial Average (DJIA). Given the information below, which would have the

Assume A Corp, B Corp, and C Corp are components of the Dow Jones Industrial Average (DJIA). Given the information below, which would have the most influence on price movements of the DJIA?

B Corp.: stock price = $50, market cap = $50 million, assets = $10,000

All would have the equal influence on price movements

C Corp: stock price = $25, market cap = $250 million, assets = $5000

A Corp: stock price = $100, market cap = $100 million, assets = $1000

Step by Step Solution

3.41 Rating (160 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock

All three companies would have equal influence on the price movements of the Dow Jones Industrial Av... View full answer

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!