User Account

All Pages

Calculate the market value of shares traded for each company

Assignment Help Corporate Finance
Reference no: EM131157136

Homework Computation of Dow Jones Industrial Average

1. Collect the names and closing share prices of the 30 companies in the DJIA from a recent WSJ or any other source (e.g., https://finance.yahoo.com). Compute the value of the DJIA using the divisor reported in the WSJ.State the date you picked for the computation.

2. Compare the value you computed with the value of the DJIA reported in the WSJ for the day you used. Are the two values same? Attach copy of the DJIA value for the date you picked from WSJ or other publication.

3. What is the weight of each company in the DJIA you computed?

4. Collect data on the number of shares traded for each company on the day you selected.

(a) Compute the market value of shares traded for each company.

(b) Compute the weight (wi) of each company using market value of each company in relation to the market value of all 30 companies. What is the sum of these weights?

(c) Identify companies with the highest and lowest weights. What explains the difference in weights?

(d) Compute "market value-weighted" average of the prices of the 30 companies included in the DJIA. (This is for exercise only- the MV weighted average would not represent the true picture of the price changes since the number of sharestraded on a given day is not a good proxy of the total number of shares outstanding for the company; however, the methodology to compute a more representative average is correct.)

5. Compute the value of the DJIA as in #1except that you use 30 as the divisor. Compare this value with that in #4 above. Which one is more realistic as a measure of "average price" of the 30 stocks in DJIA and why?

NOTES:

1. Each student works with a different set of prices of companies.
2. Clearly indicate the date you used.
3. The HW must be submitted in Excel. Use one worksheet for the narrative (Q1) and different worksheet for the showing computations.
4. Must show all computations using Excel
5. Multiple submissions of the same homework would be considered cheating and be penalized.

Reference no: EM131157136

Questions Cloud

What is your definition of compensation : Discuss the companies' compensation strategies and see whether there is a fit between organization and strategy. Are the business conditions, customers served, and employee skills the same for each? If not, how are they different?
Used by the brand to engage consumers : Analyze a company brand profile on Facebook. Post the facebook link and its facebook profile picture in your initial message (see example below). Identify all the brand assets on the page. What techniques are being used by the brand to engage consume..
How much should the company buy each time an order is placed : A company experiences annual demand of 1,000 units for an item that it purchases. The rate of demand per day is very stable, with very little variation from day to day. The item costs $50 when purchased in quantities less than 100 and $48 for 100 ..
Leadershipis affected by a number of personal : "Leadershipis affected by a number of personal, interpersonal. And organizational factors." Explain
Calculate the market value of shares traded for each company : Compute the market value of shares traded for each company. Compute the weight (wi) of each company using market value of each company in relation to the market value of all 30 companies. What is the sum of these weights?
Calculate single pass conversion of a in the reactor : Calculate the single pass conversion of A in the reactor
Types of business strategies for evaluation : Which of the following types of business strategies for evaluation and reward systems comprises high incentives based on sales and share growth?
Analyze the options available for producing the product : Analyze the options available for producing the product or service. Next, evaluate which of the available options you can take to streamline operations
Subscriber shall be responsible for the payment : AMC provides answering services to retailers. Calls to a retailer are automatically forwarded to AMC, which pays for the calls. AMC obtains telephone service at a discount from major carriers, including Sprint. Sprint's tariff (a public document sett..

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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