Tustin Corporation has provided the following data for its two most recent years of operation: Selling price per unit $ 68 Manuf
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The question is incomplete. The complete question is :
On January 4, 2019, the DJIA opened at 10,097.90. The divisor at that time was .147621194. In January 2019, Boeing was the highest-priced stock in the DJIA and Cisco was the lowest. The closing price for Boeing on January 3, 2019, was $340.90, and the closing price for Cisco was $43.47. Suppose the next day the other 29 stock prices remained unchanged and Boeing increased 3.2 percent. What would the new DJIA level be :
1. DIJA if Boeing increases 3.2 percent
2. DIJA if Cisco increases 3.2 percent
Solution :
On 3 Jan 2019, Boeing = $ 340.90, Cisco = $ 43.47
DJIA = 10,097.90
Divisor = 0.147621194
Index value =
Then the value of shares,
Value of all shares = 10097 x 0.147621194
= 1490.664
The other 29 stock prices remain unchanged, then we add the increased value of a stock to total value after divide by divisor, then we get the Index value.
The new DJIA level :
1. When Boeing increases 3.2 %
Increases in the value of Boeing =
= 1501.5728
The new DJIA level =
= 10171.80
2. When Cisco increases 3.2 %
Increases in the value of Cisco =
= 1.39104
Total value of the shares = 1490.664 + 1.39104
= 1492.055
The new DJIA level =
= 10107.32