The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio managerbelieves these stocks are an appropriate benchmark for his or her performance). Suppose that Douglas McDonnellshareholders approve a 2-for-1 stock split on January 1, 2020.Douglas McDonnellDynamics GeneralInternational RockwellNew divisorShares(millions)185Rate of return450270%1/1/19$ 694776Pricea. What is the new divisor for the index? (Do not round intermediate calculations. Round your answer to 3 decimalplaces.)1/1/20$7240651/1/21$ 855479b. Calculate the rate of return on the index for the year ending December 31, 2020, if Douglas McDonnell's share price onJanuary 1, 2021, is $26.15 per share. (Do not round intermediate calculations. Enter your answer as a percent rounded to2 decimal places.)

Price-Weighted Index:A price-weighted index's value is determined by adding the prices of all of its…

Answered: The following three defense stocks are…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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Manshuk
Three stocks are included in the price-weighted 6ULE stock index. Their current share prices are shown below: Annuity Manufacturing Perpetuity Production, Inc. Additivity Amalgamated Company If the current value of the 6ULE index is 1000, what is the current divisor? 1.00 0.27 0.60 0.90 Current Price $65 $111 $94 0.54
The following three defense stocks are to be combined into a stock index in January 2022 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance). Suppose that Douglas McDonnell shareholders approve a 3- for-1 stock split on January 1, 2023. Douglas McDonnell Dynamics General International Rockwell New divisor Shares (millions) 205 450 290 Rate of return a. What is the new divisor for the index? Note: Do not round intermediate calculations. Round your answer to 3 decimal places. 76.000 1/1/22 $ 103 48 77 Price 1/1/23 $ 109 44 66 19.18 % 1/1/24 $123 58 80 b. Calculate the rate of return on the index for the year ending December 31, 2023, if Douglas McDonnell's share price on January 1, 2024, is $38.40 per share. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
Please correct answer and don't use hand rating
A price weighted stock index has stocks AAC, BZF, and CHO in it. It is at 550 on 21-Oct-2019. CHO is replaced at the end of day trading on 22-Oct-2019 with DIY. What is the value of the index on 22-Oct-2019 (take the answer to 2 decimal places)? AAC BZF CHO DIY 21-Oct-19 $75.00 $150.00 $10.00 $106.00 22-Oct-19 $80.00 $140.00 $12.00 $107.00 23-Oct-19 $82.00 $135.00 $8.00 $104.00 Shares Outstanding (in thousands) 1,000 800 50,000 8,000
The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Douglas McDonnell Dynamics General International Rockwell Index return Shares (millions) 195 455 230 % Index value 1/1/19 $ 97 27 56 Price a. Compute the rate of return on an equally weighted index of the three defense stocks for the year ending December 31, 2019. (A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) 1/1/20 $100 22 45 1/1/21 $113 36 62 b. If the index value is set to 100 on January 1, 2019, what will the index value be on January 1, 2020? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
The following three defense stocks are to be combined into a stock index in January 2022 (perhaps a portfolio manager belleves these stocks are an appropriate benchmark for his or her performance). Suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2023. Douglas McDonnell Dynamics General International Rockwell New divisor Shares (millions) 1/1/22 Rate of return 340 458 % 45 Price 1/1/23 a. What is the new divisor for the index? Note: Do not round intermediate calculations. Round your answer to 3 decimal places. $ 106 39 63 1/1/24 $ 118 53 79 b. Calculate the rate of return on the index for the year ending December 31, 2023, if Douglas McDonnell's share price on January 1, 2024, is $39.33 per share. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.
XYZ's stock price and dividend history are as follows: Beginning-of-Year Dividend paid at Price $ 102 122 92 102 Year 2018 2019 2020 2021 Year-End $4 Arithmetic average rate of return Geometric average rate of return 4 An investor buys three shares of XYZ at the beginning of 2018, buys another two shares at the beginning of 2019, sells one share at the beginning of 2020, and sells all four remaining shares at the beginning of 2021. 4 4 a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-year rates of return and final answers to 2 decimal places. Do not round other calculations.) Dollar-weighted rate of return b. What is the dollar-weighted rate of return? (Hint: Carefully prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2018, to January 1, 2021. If your calculator cannot calculate internal rate of return, you will have to use trial i and error.) (Round your answer to 4…
What is the process of consideration of the payback period?
An investor is considering purchasing shares in Unicorn plc & has asked for your advice. On April 1st, 2020 the share price was 662p. In the June 2020 an interim dividend of 12p was paid and in January 2021, a final dividend of 32p was paid. On March 31st, 2021 the share price was 724p. What was the TSR for the year for Unicorn Ordinary shares?
Am. 12.
(please use Excel) Preferred stock B sells for $45 in the market and pays an annual dividend of $4.60.a) If the market required yield is 10 percent, what is the value of the stock to investors?b) Should investors buy the shares? Include reasons

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