Use the following information to answer Questions 14-18. The table below reports

Question

Use the following information to answer Questions 14-18. The table below reports the closing market prices (P) and shares outstanding (SO) for two stocks: ABC and XYZ. Note that stock XYZ has a 3 for 1 stock split which may, or may not, impact index construction. What divisor would we use for the First, Second, and Third Periods in constructing the Value-Weighted Index?
Period ABC XYZ P SO P SO 1 45.00 110 112.00 300 2 47.00 110 119.00 300 3 49.00 110 41.33 900
a. 25,747 b. 38,550 c. 39,901 d. 42,587 Use the following information to answer Questions 14-18. The table below reports the closing market prices (P) and shares outstanding (SO) for two stocks: ABC and XYZ. Note that stock XYZ has a 3 for 1 stock split which may, or may not, impact index construction. What divisor would we use for the First, Second, and Third Periods in constructing the Value-Weighted Index?
Period ABC XYZ P SO P SO 1 45.00 110 112.00 300 2 47.00 110 119.00 300 3 49.00 110 41.33 900
a. 25,747 b. 38,550 c. 39,901 d. 42,587 Use the following information to answer Questions 14-18. The table below reports the closing market prices (P) and shares outstanding (SO) for two stocks: ABC and XYZ. Note that stock XYZ has a 3 for 1 stock split which may, or may not, impact index construction. What divisor would we use for the First, Second, and Third Periods in constructing the Value-Weighted Index?
Period ABC XYZ P SO P SO 1 45.00 110 112.00 300 2 47.00 110 119.00 300 3 49.00 110 41.33 900
a. 25,747 b. 38,550 c. 39,901 d. 42,587 Use the following information to answer Questions 14-18. The table below reports the closing market prices (P) and shares outstanding (SO) for two stocks: ABC and XYZ. Note that stock XYZ has a 3 for 1 stock split which may, or may not, impact index construction. What divisor would we use for the First, Second, and Third Periods in constructing the Value-Weighted Index?
Period ABC XYZ P SO P SO 1 45.00 110 112.00 300 2 47.00 110 119.00 300 3 49.00 110 41.33 900
a. 25,747 b. 38,550 c. 39,901 d. 42,587

Explanation / Answer

38550 shall be the Index divisor to come at an even Index

Company Stock Price Shares Outstanding Market Capitalization ABC 45 110 4950 XYZ 112 300 33600 Total 38550

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