subject
Business, 19.03.2020 18:04 ericchen4399

The following three defense stocks are to be combined into a stock index in January 2016 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance): Suppose that Douglas McDonnell shareholders approve a 7-for-1 stock split on January 1, 2017.

Price

Shares (millions) 1/1/13 1/1/14 1/1/15
Douglas McDonnell 530 $62 $66 $81
Dynamics General 230 34 28 42
International Rockwell 330 63 52 68

a. What is the new divisor for the index?
b. Calculate the rate of return on the index for the year ending December 31, 2014, if Douglas McDonnell’s share price on January 1, 2015, is $23.70 per share.

ansver
Answers: 3

Another question on Business

question
Business, 21.06.2019 22:00
The market yield on spice grills' bonds is 15%, and the firm's marginal tax rate is 33%. what is their shareholders' required return if the equity risk premium is 4%?
Answers: 1
question
Business, 22.06.2019 07:20
Suppose that real interest rates increase across europe. this development will u.s. net capital outflow at all u.s. real interest rates. this causes the loanable funds to because net capital outflow is a component of that curve.
Answers: 1
question
Business, 22.06.2019 14:50
Pederson company reported the following: manufacturing costs $480,000 units manufactured 8,000 units sold 7,500 units sold for $90 per unit beginning inventory 2,000 units what is the average manufacturing cost per unit? (round the answer to the nearest dollar.)
Answers: 3
question
Business, 22.06.2019 15:00
1. list five staple convenience goods that you or your household buys on a regular basis. (you do not need to use complete sentences. 2.5 points) 2. list three impulse convenience goods that you or someone you know has purchased. (you do not need to use complete sentences. 2.5 points) 3. describe a shopping good that you or someone you know purchased. what kind of research did you or that person do before buying the product? (1-5 sentences. 3.0 points) 4. choose an example of a company you could start, and decide which business structure would make the most sense for that type of company (sole proprietorship, partnership, llc, c corporation, s corporation, or nonprofit corporation). explain why this structure would be good for this type of company. give at least 3 reasons. (3-6 sentences. 6.0 points) 5. if you were starting a new business, describe at least three departments to the company that you would need right away. why are these departments so important? (1-5 sentences. 3.0 points) 6. describe a product that you think has saturated its market. what makes you think it has saturated its market? (1-5 sentences. 3.0 points)
Answers: 2
You know the right answer?
The following three defense stocks are to be combined into a stock index in January 2016 (perhaps a...
Questions
question
Mathematics, 03.02.2021 22:30
question
Mathematics, 03.02.2021 22:30
question
Physics, 03.02.2021 22:30
question
History, 03.02.2021 22:30
Questions on the website: 13722367