Construct a price-weighted index

Assignment Help Financial Management
Reference no: EM13722773

You construct a price-weighted index of 78 stocks. At the beginning of the day the index is 9,364.36. During the day, 77 stock prices remain the same, and one stock price increases $4.30. At the end of the day, your index value is 9,417.95. What is the divisor on your index? (Round your answer to 8 decimal places) Please show all work!

Reference no: EM13722773

Questions Cloud

What is the return on your investment in the bond : You purchase a 7 percent $1,000 bond with a term of ten years and reinvest all interest payments. If interest rates rise to 10 percent after you purchase the bond what is the return on your investment in the bond?
Tax bracket invests in the preferred stock : A corporation in a 34% tax bracket invests in the preferred stock of another company and earns a 6% pre-tax rate of return. An individual investor in a 15% tax bracket invests in the same preferred stock and earns the same pre-tax return. The after t..
Pension plan is obligated to make disbursements : A pension plan is obligated to make disbursements of $1.7 million, $2.7 million, and $1.7 million at the end of each of the next three years, respectively. The annual interest rate is 8%. If the plan wants to fully fund and immunize its position, how..
What is the duration if the yield to maturity : Find the duration of a 6% coupon bond making annual coupon payments if it has three years until maturity and a yield to maturity of 6.2%. What is the duration if the yield to maturity is 10.2%?
Construct a price-weighted index : You construct a price-weighted index of 78 stocks. At the beginning of the day the index is 9,364.36. During the day, 77 stock prices remain the same, and one stock price increases $4.30. At the end of the day, your index value is 9,417.95. What is t..
What would be the maintenance margin if a margin call : Assume you sold short 100 shares of common stock at $50 per share. The initial margin is 60%. What would be the maintenance margin if a margin call is made at a stock price of $60?
Account before making the offsetting transaction : Assume you sell short 100 shares of common stock at $45 per share, with initial margin at 50%. What would be your rate of return if you repurchase the stock at $40/share? The stock paid no dividends during the period, and you did not remove any money..
Considering the purchase of a new cookie oven : Mom’s Cookies Inc. is considering the purchase of a new cookie oven. The original cost of the old oven was $30,000; it is now five years old, and it has a current market value of $13,333.33. The old oven is being depreciated over a 10-year life towar..
Interest on margin : You purchased 100 shares of IBM common stock on margin at $70 per share. Assume the initial margin is 50% and the maintenance margin is 30%. Below what stock price level would you get a margin call? Assume the stock pays no dividend; ignore interest ..

Reviews

Write a Review

 

Financial Management Questions & Answers

  What analyses might a manager do to learn more about a

financial management 3 essay questions apa format250 words each question 2 cited sources each question.no

  Discuss the formation of financial statements

Discuss the formation of financial statements by introducing debit, credit, books of prime entry, accounts and ledgers, trial balance, final accounts and explain and compare appropriate formats of financial statements for difference forms of compa..

  What is the efn to achieve the projected growth rate

What is the EFN to achieve the projected 50% growth rate (change the Notes Payable, Long-term debt, and common equity to make the balance sheet balanced)?

  What is the future value-ordinary annuity cash flow

What is the future value in 24yrs of an ordinary annuity cash flow of $345 every quarter of a year at the end of the period at an annual interest rate of 4.18 percent per year compounded quarterly? Round answer to two decimal places

  State what effect would rising rates on corporate earnings

Given this economic background...Compose a 2-4 page report, single-spaced, on the following topic: If the Fed decides to raise interest rates next year, what effect would rising rates have upon the following:

  Capital budget methods

What is the project's NPV?

  Financial decision-making techniques

Complete a project that helps you apply theoretical knowledge of financial planning to practical applications. It is a proven fact that learning by doing is more effective than reading theory.

  Swiss franc denominated bond sale

Apple just completed a large, Swiss Franc denominated bond sale. In the discussion board for this topic, explain why a company that has almost $200 billion in cash would decide to issue bonds and why they would choose to use Swiss Franc denominated b..

  Management install the network system

Management install the network system

  Problem 130 year monthly mortgage was 450000 with annual

problem 130 year monthly mortgage was 450000 with annual interest rate of 5.what is the principal for first year

  Why do bubbles and bursts occur in financial markets in

why do bubbles and bursts occur in financial markets? in discussing this issue you need to focus on the rationality of

  Explain what factors are contributing to the success or lack

What kind of a merger was it? How well is it working from the perspectives of the various stockholders? As far as you are able to determine, what factors are contributing to the success or lack of it?

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