Construct a price-weighted index of the three stocks

Assignment Help Financial Management
Reference no: EM131452156

Three stocks have share prices of $12. $75. and $30 with total market values of $400 million. $350 million, and $150 million, respectively. If you were to construct a price-weighted Index of the three stocks, what would be the index value?

Reference no: EM131452156

Questions Cloud

Trigger words and phrases for powerful multimedia content : Review the web article by Clark, called "50 Trigger Words and Phrases for Powerful Multimedia Content,".
Manufacturing company with the development : Consider the following scenario: You are hired as a safety/lean consultant to help a manufacturing company with the development of its safety program.
What is the new divisor for a price weighted index : The Hydro Index is a price weighted stock index based on the 5 largest boat manufacturers in the nation. What is the new divisor for a price weighted index?
What type of political system might have greatest potential : What type of political system might have the greatest potential for imposing adverse political risk on an international business?
Construct a price-weighted index of the three stocks : If you were to construct a price-weighted Index of the three stocks, what would be the index value?
What does she mean by vicious compliance : "Oh, come on. I've been here 30 years and I've heard it all. All these management programs....Years ago, we had Zero Defects.
Importance of job analysis in strategic hrm : 1. Discuss the importance of Job Analysis in strategic HRM and explain the different approaches to job design.
Shortcomings of high formalization and centralization : Consider and discuss your experiences with formalization and centralization in your organizations.
Hedge ratios for first and second period for two period call : What are the hedge ratios for the first and second period for two period calls?

Reviews

Write a Review

Financial Management Questions & Answers

  Companies for building up cash and not paying dividends

Why did Microsoft decide in 2004 to double its cash dividend and buy back up to $30 billion of the company's stock over the next four years?

  The bonds make semi annual payments

Grohl Co. issued 14-year bonds a year ago at a coupon rate of 9 percent. The bonds make semi annual payments. If the YTM on these bonds is 9 percent, what is the current bond price?

  Does the expected return exceed the required return

IFix, a technology company, is evaluating the purchase of stock in Repair Me . The risk free rate of return is 5%, the required rate on a market portfolio of stocks is 10%, the expected rate of return on Repair me stock is 13% and its market beta is ..

  Shares of stock outstanding at a market price

Bob's Auto Group has 25,000 shares of stock outstanding at a market price of $4.50 a share. What will the market price per share be if the company does a 1-for-5 reverse stock split? A. $18.00 B. $20.00 C. $22.50 D. $27.00 E. $29.50

  Use as the annual sales figure when evaluating this project

Winnebagel Corp. currently sells 25,000 motor homes per year at $63,000 each, and 9,500 luxury motor coaches per year at $100,000 each. The company wants to introduce a new portable camper to fill out its product line; What is the amount to use as th..

  What is the expected return e on common stock of starbucks

Understanding CAPM and beta. Assume the common stock of Starbucks has a beta of β = 1.5 and a standard deviation of σ = 15.5 percent. Also assume the rate of return on the market is Rm = 12.5 percent and the risk-free rate of return is Rf = 5 percent..

  How much will balloon payment be in eight years

Audrey Sanborn has just arranged to purchase a $530,000 vacation home in the Bahamas with a 20 percent down payment. The mortgage has a 5.9 percent APR, compounded monthly, and calls for equal monthly payments over the next 30 years. How much will Au..

  What is the contribution to asset base of under Base III

What is the contribution to the asset base of the following items under the Basel III requirements?

  What is the disadvantage of the idea during a weak economy

During a weak economy jobs are scarce, so some individuals may consider starting their own businesses. What is the disadvantage of this idea during a weak economy?

  Shorted by weight and type before being shipped off to feed

The Queensland Land and Cattle Company (QL&CC) is one of the largest cattle-buyers in the country. It has buyers at all the major cattle auctions throughout eastern Australia who buy on the company’s behalf and then have cattle shipped to Longreach, ..

  Afford to make monthly payments

You want to borrow $87,000 from your local bank to buy a new sailboat. You can afford to make monthly payments of $1,550, but no more. Assuming monthly compounding, what is the highest APR you can afford on a 72-month loan?

  Firms primarily involved in exporting are most likely

Other things being equal, stock prices of U.S. firms primarily involved in exporting are most likely ____ affected by a weak dollar. Stock prices of U.S. importing firms are most likely ____ affected by a weak dollar.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd