Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 DECEMBER 31, Year 2 Price Shares Outstanding Price Shares Outstanding Stock K $23 110,000,000 $34 110,000,000 Stock...

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Finance

Consider the following stock price and shares outstandinginformation.
DECEMBER 31, Year 1 DECEMBER 31, Year 2

Price Shares
Outstanding
Price Shares
Outstanding
Stock K $23 110,000,000 $34 110,000,000
Stock M 82 2,100,000 50 4,200,000^a
Stock R 36 29,000,000 38 29,000,000
^aStock split two-for-one during theyear.
Compute the beginning and ending values for a price-weightedindex and a market-value-weighted index. Assume a base value of 100and Year 1 as the base period. Do not round intermediatecalculations. Round your answers to two decimal places.
Â Â Â Â Â Â Â Â Â Â PWI_Year1:
Â Â Â Â Â Â Â Â Â Â PWI_Year2:
Â Â Â Â Â Â Â Â Â Â VWI_Year1:
Â Â Â Â Â Â Â Â Â Â VWI_Year2:
Compute the percentage change in the value of each index duringthe year. Do not round intermediate calculations. Round youranswers to two decimal places.
Percentage change in PWI:Â Â Â %
Percentage change in VWI:Â Â Â %
Compute the percentage change for an unweighted index assuming$1,000 is invested in each stock. Do not round intermediatecalculations. Round your answer to two decimal places.
Â Â %

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QUESTION a The Price Weighted Index for Year 1 is PWI1 2382363 47 Because Stock M has a stock split now at the end of year 1 stock of 82 would become stock of 41 the divisor must change appropriately so that PWI1 remains See Answer

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Consider the following stock price and shares outstanding information. DECEMBER 31, Year 1 DECEMBER 31, Year 2 Price Shares Outstanding Price Shares Outstanding Stock K $23 110,000,000 $34 110,000,000 Stock...

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Finance

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	DECEMBER 31, Year 1		DECEMBER 31, Year 2
	Price	Shares Outstanding		Price	Shares Outstanding
Stock K	$23		110,000,000		$34	110,000,000
Stock M	82		2,100,000		50	4,200,000^a
Stock R	36		29,000,000		38	29,000,000
^aStock split two-for-one during theyear.