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White raven [17]
3 years ago
14

A benchmark market value index is comprised of three stocks. Yesterday the three stocks were priced at $16, $24, and $55. The nu

mber of outstanding shares for each is 640,000 shares, 540,000 shares, and 240,000 shares, respectively. If the stock prices changed to $20, $22, and $57 today respectively, what is the 1-day rate of return on the index
Business
1 answer:
tatyana61 [14]3 years ago
3 0

Answer:

The 1-day rate of return on the index = 5.36%

Explanation:

Index Value = Sum of (Outstanding Shares*Share Price)

      q          p           mv              q1            p1          mv1

640,000   16    10240000      640000    20     12800000

540,000   24   12960000      540000    22     11880000

240,000   55   <u>13200000</u>  240000    57     <u>13680000</u>

                        <u>36400000 </u>                                <u>38360000</u>

Note: q/q1 = no of shares, p = price per share, mv/mv1 = market value, p1 = changed price per share

Return = (Index Value Today - Index Value Yesterday)/Index Value Yesterday

Return = (38360000 - 36400000) / 36400000

Return = 0.05385

Return = 5.36%

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Answer:

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Explanation:

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On January 1, 2018, Red Flash Photography had the following balances: Cash, $21,000; Supplies, $8,900; Land, $69,000; Deferred R
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Answer:

See explanation

Explanation:

Red Flash Photography

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Credit               Cash                                     $32,000

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5. Debit    Supplies                          $31,000

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The total appraised cost for the components of the property purchased=$72,000+$50,000+$23,000=$ 145,000.00  

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