HomeworkLib
Question

A stock index consists of these 4 companies: Stock D, 11 million shares, $19 per share...

A stock index consists of these 4 companies: Stock D, 11 million shares, $19 per share Stock E, 103 million shares, $25 per share Stock F, 35 million shares, $44 per share Stock G, 73 million shares, $101 per share If the divisor is 5.2 million, then what is the index level now? Round your answer to the nearest point

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

1) A STOCK CONSISTS OF THESE 4 COMPANIES STOCK D 11 MILLION SHARES $ 19 PER SHARE STOCK E 103 MILLION SHARES $25 PER SHARE STOCK F 35 MILLION SHARES,$44 PER SHARE STOCK G 73 MILLION SHARES,$101 PER SHARE IF THE DIVISOR IS 5,2 MILLION,THEN WHAT IS THE INDEX LEVEL NOW? ROUND YOUR ANSWER TO NEAREST POINT?\

A) First let us check all the stocks and share values

1.stock D = 11*19=209

2.stock E =103*25=2575

3.stock F =35*44=1540

4.stock G =73*101=7373

DIVISOR IS 5.2 MILLIONS SO

209+2575+1540+7373=11697

11697/5,2=2249.42 is equivalent to 2250

0 0
Add a comment
Know the answer?
Add Answer to:
A stock index consists of these 4 companies: Stock D, 11 million shares, $19 per share...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Assume that an investor buys 100 shares of stock at $35 per share, putting up a...

    Assume that an investor buys 100 shares of stock at $35 per share, putting up a 73% margin. a. What is the debit balance in this transaction? b. How much equity funds must the investor provide to make this margin transaction? c. If the stock rises to $54 per share, what is the investor's new margin position? a. The debit balance in this transaction is s (Round to the nearest dollar.) b. The amount of equity funds the investor must...

  • The ABC stock index is based on the listed price of stock in three companies, A, B and C. The ind...

    The ABC stock index is based on the listed price of stock in three companies, A, B and C. The index is market weighted and corrected for dividends and stock splits. On Day 1, the index is at 2000 points when markets close. Then the price of each share in A is 3,24, in B 0,75 and in C 6,7. There have been issued (and sold to investors) 100 million shares in A, 250 million in B and 100 million...

  • OMG inc. has 5 million shares of common stock outstanding, 4 million shares of preferred stock...

    OMG inc. has 5 million shares of common stock outstanding, 4 million shares of preferred stock outstanding, and 6,000 bonds. Suppose the common shares are selling for $19 per share, the preferred shares are selling for $28 per share, and the bonds are selling for 108 percent of par. What would be yhe weight used for equity in the computation of OMG's WACC? (Round answer to 2 decimal places.) Can someone explain how you got your answer please? OMG Inc....

  • Agee Storage issued 45 million shares of its $1 par common stock at $22 per share...

    Agee Storage issued 45 million shares of its $1 par common stock at $22 per share several years ago. Last year, for the first time, Agee reacquired 1 million shares at $20 per share. If Agee now retires 1 million shares at $25 per share. By what amount will Agee's total paid-in capital decline? (Enter your answer in millions (i.e., 10,000,000 should be entered as 10).) Total paid-in capital will decline by million

  • OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock...

    OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5,000 bonds. Suppose the common shares sell for $19 per share, the preferred shares sell for $18 per share, and the bonds sell for 108 percent of par. What weight should you use for preferred stock in the computation of OMG’s WACC? (Round your answer to 2 decimal places.) Weight used: ____.__%

  • A firm has 10 million shares outstanding with a market price of $35 per share. The...

    A firm has 10 million shares outstanding with a market price of $35 per share. The firm has $35 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations after the repurchase? Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two decimal places....

  • OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock...

    OMG Inc. has 4 million shares of common stock outstanding, 3 million shares of preferred stock outstanding, and 5,000 bonds. Suppose the common shares are selling for $26 per share, the preferred shares are selling for $25 per share, and the bonds are selling for 109 percent of par. What weight should you use for debt in the computation of OMG’s WACC? (Round your answer to 2 decimal places.) Weight used: ___.__%

  • Stock Repurchase A firm has 5 million shares outstanding with a market price of $35 per...

    Stock Repurchase A firm has 5 million shares outstanding with a market price of $35 per share. The firm has $40 million in extra cash (short-term investments) that it plans to use in a stock repurchase; the firm has no other financial investments or any debt. What is the firm's value of operations after the repurchase? Enter your answer in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answer to two...

  • ECB Co. has 1 million shares outstanding selling at $20 per share. It plans to repurchase...

    ECB Co. has 1 million shares outstanding selling at $20 per share. It plans to repurchase 100,000 shares at the market price. What will be its market capitalization after the repurchase? What will be its stock price? The market capitalization after the repurchase is million. (Round to The stock price per share will be $ (Round to the nearest dollar.) three decimal places.)

  • Coastal Corporation issued 25,000 shares of $11 par value common stock at $22 per share and...

    Coastal Corporation issued 25,000 shares of $11 par value common stock at $22 per share and 6,000 shares of $56 par value, eight percent preferred stock at $84 per share. Later, the company purchased 3,000 shares of its own common stock at $26 per share. a. Prepare the journal entries to record the share issuances and the purchase of the common shares. b. Assume that Coastal sold 2,000 shares of the treasury stock at $30 per share. Prepare the general...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT