What is the new divisor for the price-weighted index

Assignment Help Financial Management

Reference no: EM13721630

Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $36, $312, and $82, respectively. If Baker undergoes a 3-for-2 stock split, what is the new divisor for the price-weighted index?

Reference no: EM13721630

Questions Cloud

Stock price according to the constant growth dividend model : The black forest cake company just paid an annual dividend of $1.25. If you expect a constant growth rate of 5.98%, and have a required rate of return of 10.71%, what is the current stock price according to the constant growth Dividend model?

Saving for expected retirement : You are saving for your expected retirement at age 68 -- forty-eight years from today. You plan to invest $2,000 per year, in arrears, for the next forty-eight years and earn 5% per year. How much would you have accumulated after making your 48th and..

Risk-free interest rate : The common stock of the C.A.L.L. Corporation has been trading in a narrow range around $140 per share for months, and you believe it is going to stay in that range for the next 6 months. The price of a 6-month put option with an exercise price of $14..

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

What is the new divisor for the price-weighted index : Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $36, $312, and $82, respectively. If Baker undergoes a 3-for-2 stock split, what is the new divisor for the price-weighted index?

Savings account earnings : You are going to save money for your daughter’s education. You decide to place $4,252 every half year into savings account earnings 5.10 percent per year, compounded semi annually for the next 12 years. How much money will be in the account at the en..

Announces a new monetary growth policy : Suppose that during a certain week the Fed announces a new monetary growth policy, Congress surprisingly passes legislation restricting imports of foreign automobiles, and Ford comes out with a new car model that it believes will increase profits sub..

What is the expected return of your portfolio : Stock J has a beta of 1.20 and an expected return of 13.16 percent, while Stock K has a beta of .75 and an expected return of 10.10 percent. You want a portfolio with the same risk as the market. What is the expected return of your portfolio?

Bonds in both firms are risk free-they are zero-coupon bonds : The bonds in both firms are risk free and they are zero-coupon bonds that will pay the holder principal and interest one year from today. The risk-free interest rate is 10%. An individual investor can also borrow or lend from a bank at the 10% risk-f..

User Account

All Pages