Answer:
1.The stock prices for the five stocks before the split is $40
2. The new divisor for a price weighted index is $ 4.5 after the split
Step by Step Explanation:
1.
Price weighted index =10+20+80+50+40/5
Price weighted index =40
Therefore, the price-weighted index before the split is 40.
2.After the split, the last stock became half to the original value. The value of last stock before the split is $40 and after the split is $20.
To find the new price divisor, let assume the denominator is X.
40=10+20+80+50+20/X
Therefore X=10+20+80+50+20/40
X = $4.5
Therefore, the new price divisor for the price-weighted index after the split is $4.5
I think the answer is called enriching but i might be wrong.
Who ever is renting the place
Answer:
$32.14 per share
Explanation:
The computation of the current value of the single share is shown below:
= Current year dividend ÷ (Required rate of return - growth rate)
where,
Current year dividend is $2.25 per share
Required rate of return is 10%
And, the growth rate is 3%
So by placing these items, the current value is
= $2.25 ÷ (10% - 3%)
= $32.14 per share
So theoretically, opening a new cup cake shop would decrease the demand for ice cream. A decrease in demand would cause the demand curve to shift to the left.