None Consider the following stock price and shares outstanding information.DECEMBER 31, Year 1PriceStock K$21Stock M84Stock R45SharesOutstanding Price101,000,000 $342,000,000 4023,000,000 49Stock split two-for-one during the year.DECEMBER 31, Year 2SharesOutstanding101,000,0004,000,000°23,000,000a. 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 thebase 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 decimalplaces.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 youranswer to two decimal places.%

Explanation The calculations for the price-weighted index (PWI) and market-value-weighted index…

Answered: Consider the following stock price and…

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

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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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