Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 DECEMBER 31, Year 2 Shares Shares Price Outstanding Price Outstanding Stock K $19 108,000,000 $30 108,000,000 Stock M 76 Stock R 42 *Stock split two-for-one during the year. 4,000,000 2,000,000 47 21,000,000 46 21,000,000 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. PWI 1: PWI 2: VWIyear 1: VWIvar 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. % %
Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 DECEMBER 31, Year 2 Shares Shares Price Outstanding Price Outstanding Stock K $19 108,000,000 $30 108,000,000 Stock M 76 Stock R 42 *Stock split two-for-one during the year. 4,000,000 2,000,000 47 21,000,000 46 21,000,000 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. PWI 1: PWI 2: VWIyear 1: VWIvar 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. % %
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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