Answer:
111
Explanation:
Given that,
Beginning index value = 100
Beginning value:
= Kirk, Inc. + Picard Co.
= (No. of shares outstanding × Price per share)
= (40,000 × $38) + (28,500 × $73)
= $1,520,000 + $2,080,500
= $3,600,500
Ending value:
= Kirk, Inc. + Picard Co.
= (No. of shares outstanding × Price per share)
= (40,000 × $42) + (28,500 × $81)
= $1,680,000 + $2,308,500
= $3,988,500
Index level at the end of the year:
= (Ending value ÷ Beginning value) × Beginning index value
= ($3,988,500 ÷ $3,600,500) × 100
= 1.11 × 100
= 111
