Consider the three stocks in the following table. Pe represents price at time t, and Qe represents shares outstanding at time & Stock C splits two for one in the last period. Stock A с Po 80 85 35 a. Rate of return b. New divisor 00 275 650 950 Rate of return P1 85 80 50 01 275 650 950 P₂ Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (f=0 to 1-1). Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. Calculate the new divisor for the price-weighted index in year 2. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. Calculate the rate of return for the second period (t-1 to t-2). Note: Round your answer to 2 decimal places. % 02 275 650 85 80 25 1,900
Consider the three stocks in the following table. Pe represents price at time t, and Qe represents shares outstanding at time & Stock C splits two for one in the last period. Stock A с Po 80 85 35 a. Rate of return b. New divisor 00 275 650 950 Rate of return P1 85 80 50 01 275 650 950 P₂ Required: a. Calculate the rate of return on a price-weighted index of the three stocks for the first period (f=0 to 1-1). Note: Do not round intermediate calculations. Round your answer to 2 decimal places. b. Calculate the new divisor for the price-weighted index in year 2. Note: Do not round intermediate calculations. Round your answer to 2 decimal places. c. Calculate the rate of return for the second period (t-1 to t-2). Note: Round your answer to 2 decimal places. % 02 275 650 85 80 25 1,900
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter5: Financial Options
Section: Chapter Questions
Problem 3Q
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