a. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Round your answers to two decimal places. PWIyear 1: PWIYear 2: VWIyear 1: VWIyear 2: b. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places. Percentage change in PWI: Percentage change in VWI: c. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two decimal places. % %
a. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do not round intermediate calculations. Round your answers to two decimal places. PWIyear 1: PWIYear 2: VWIyear 1: VWIyear 2: b. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places. Percentage change in PWI: Percentage change in VWI: c. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two decimal places. % %
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 2MAD
Related questions
Question
![Consider the following stock price and shares outstanding information.
%
%
%
DECEMBER 31, Year 1
Shares
Outstanding
101,000,000 $33
2,200,000 40
25,000,000 38
DECEMBER 31, Year 2
Shares
Price Outstanding
Price
$19
74
36
a. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do
not round intermediate calculations. Round your answers to two decimal places.
PWIYear 1:
PWIYear 2:
VWIyear 1:
VWIyear 2:
b. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places.
Percentage change in PWI:
Percentage change in VWI:
c. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two
decimal places.
Stock K
Stock M
Stock R
aStock split two-for-one during the year.
101,000,000
4,400,000a
25,000,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F386a901b-1d58-4e72-bed0-53949b2cb2a8%2F8377d070-3f71-4f75-aae9-7eb00056b74a%2Fe7ivxeb_processed.png&w=3840&q=75)
Transcribed Image Text:Consider the following stock price and shares outstanding information.
%
%
%
DECEMBER 31, Year 1
Shares
Outstanding
101,000,000 $33
2,200,000 40
25,000,000 38
DECEMBER 31, Year 2
Shares
Price Outstanding
Price
$19
74
36
a. Compute the beginning and ending values for a price-weighted index and a market-value-weighted index. Assume a base value of 100 and Year 1 as the base period. Do
not round intermediate calculations. Round your answers to two decimal places.
PWIYear 1:
PWIYear 2:
VWIyear 1:
VWIyear 2:
b. Compute the percentage change in the value of each index during the year. Do not round intermediate calculations. Round your answers to two decimal places.
Percentage change in PWI:
Percentage change in VWI:
c. Compute the percentage change for an unweighted index assuming $1,000 is invested in each stock. Do not round intermediate calculations. Round your answer to two
decimal places.
Stock K
Stock M
Stock R
aStock split two-for-one during the year.
101,000,000
4,400,000a
25,000,000
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