1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Semenov [28]
3 years ago
13

A price weighted index is composed of 3 stocks. Stocks A, B, and C are trading for $100, $56 and $32 respectively. The number of

shares outstanding are 1000 shares (for Stock A), 500 shares (for stock B) and 500 shares (for stock C). Stock A has a two for one stock split, and consequently its price automatically drops to $50 (all other stock prices remain unchanged). What must be the value of the new divisor
Business
1 answer:
gogolik [260]3 years ago
7 0

Answer:

The total value will not change.

Explanation:

Stock split occurs when a stock is divided into parts. The value of each stock will decline but there will be more stocks and overall value will remains same. If stock A goes through a stock split then the new price per stock will decline but the overall value to the investor will remain same.

You might be interested in
What are the six basic step of the problem solving process? HURRY I NEED THIS QUICK
SSSSS [86.1K]

Answer:

1) identify your problem: Try to describe the problem as much as possible, as opposed to focusing on the potential consequences or implications of the problem.

2) Pin point the problem

3) so that means you should do research based on the problem ^

4)Try evaluating the problem.. perhaps looking at it in perspective ^

5)see how the problem could affect you or others

6) Then work out a plan to solve the problem

6 0
2 years ago
Read 2 more answers
5. The Bureau of Economic Analysis reported that, in real terms, overall consumer spending increased by $345.8 billion in 2015.
ikadub [295]

Answer & Explanation:

a. MPC = 0.50; Change in consumption spending = $345.8 billion

According to multiplier formula,

Change in real GDP/ Change in consumption spending = 1/(1-MPC) = 1/(1-0.5) = 1/0.5 = 2

So, Change in GDP = Change in consumption spending*2 = (345.8)*2 = $691.6 billion

Change in GDP = $691.6 billion

b. Change in investment = -$100

According to multiplier formula,

Change in real GDP/ Change in investment = 1/(1-MPC) = 1/(1-0.5) = 1/0.5 = 2

So, Change in GDP = Change in investment*2 = (-100)*2 = -200

So, total change in GDP = 691.6 - 200 = $491.6 billion

Change in real GDP = $491.6 billion

c. Percentage change in real GDP = (Change in Real GDP/GDP at the end of 2014)*100 = (491.6/15,982.3)*100 = 3.08%

7 0
3 years ago
Why is international improvement important​
abruzzese [7]

Answer:

Because they have farts

Explanation:

its mindness

7 0
3 years ago
Read 2 more answers
Colinda has just purchased her first home for $125,000. She put down a 20 percent down payment of $25,000 and took out a 4 perce
svetlana [45]
Answer: $333 Interest and $144 Principal
To find the values for this payment, you will need to use an amortization calculator. If you were not given one, there are numerous ones online. 
Simply enter the amount of the loan $100,000. Then, the number of years, 30 is standard. Finally, enter the percent.
It will show you that the total payment is $477 and also the break down of the payment as given in the answer.

3 0
3 years ago
All of the following are benefits of new product development to a firm except:
butalik [34]

Answer:

Reducing the costs of production.

Explanation:

New product development is a procedure that requires a huge first time cost of production. The product might need new technology and new means to produce.

For example, even just to come up with a new flavor for an already existing brand of chips, new raw materials, storage space, more labor, new tools and equipment, increased marketing cost is required. This poses an increase in cost and certainly not a decrease in the cost of production.

5 0
3 years ago
Other questions:
  • Which two forms of financial aid require the student to bear the costs of college education?
    12·1 answer
  • A leftward shift of the supply curve for oil in the united states is most likely to result from:
    14·1 answer
  • Which of the following would cause the U.S. demand curve for Japanese yen to shift to the right?
    15·1 answer
  • Bellswood Jewelers uses an ID card scanner and six-digit code to allow entry into their jewelry vault. The six-digit code is the
    13·1 answer
  • What organization can you contact to find local trade shows?
    7·1 answer
  • Which of the following would NOT shift an economy's PPF? *
    15·1 answer
  • Career choice, getting/keeping a job, career changes, career advancement skills are examples of
    12·1 answer
  • A joint venture is an agreement between two or more companies to share a business project.
    15·1 answer
  • SSG Cycles manufactures and distributes motorcycle parts and supplies. Employees are offered a variety of share-based compensati
    10·1 answer
  • MB has been using proper workflow for her sales process by creating invoices, receiving payments, and recording deposits using t
    14·2 answers
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!