Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 Price Stock K $21 Stock M 84 Stock R 45 Shares Outstanding Price 101,000,000 $34 2,000,000 40 23,000,000 49 Stock split two-for-one during the year. DECEMBER 31, Year 2 Shares Outstanding 101,000,000 4,000,000° 23,000,000 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. 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
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Consider the following stock price and shares outstanding information.
DECEMBER 31, Year 1
Price
Stock K
$21
Stock M
84
Stock R
45
Shares
Outstanding Price
101,000,000 $34
2,000,000 40
23,000,000 49
Stock split two-for-one during the year.
DECEMBER 31, Year 2
Shares
Outstanding
101,000,000
4,000,000°
23,000,000
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.
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.
%
Transcribed Image Text:Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 Price Stock K $21 Stock M 84 Stock R 45 Shares Outstanding Price 101,000,000 $34 2,000,000 40 23,000,000 49 Stock split two-for-one during the year. DECEMBER 31, Year 2 Shares Outstanding 101,000,000 4,000,000° 23,000,000 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. 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. %
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