e the data below to determine which of the statements is most accurate? a) For a given percentage change in stock price, company Y will have less impact on the market-cap weighted index as company Z. b) A 100% increase in the stock price of company X will have a smaller impact on the price-weighted index than a 100% increase in the stock price of company Z. c) For a given percentage change in the stock price, company X will have a greater impact on the market-cap weighted index than companies Y & Z.
e the data below to determine which of the statements is most accurate? a) For a given percentage change in stock price, company Y will have less impact on the market-cap weighted index as company Z. b) A 100% increase in the stock price of company X will have a smaller impact on the price-weighted index than a 100% increase in the stock price of company Z. c) For a given percentage change in the stock price, company X will have a greater impact on the market-cap weighted index than companies Y & Z.
Corporate Financial Accounting
14th Edition
ISBN:9781305653535
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Financial Statement Analysis
Section: Chapter Questions
Problem 14.11BE: Earnings per share and price-earnings ratio A company reports the following: Net income 410,000...
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Use the data below to determine which of the statements is most accurate?
a) For a given percentage change in stock price, company Y will have less impact on the market-cap weighted index as company Z.
b) A 100% increase in the stock price of company X will have a smaller impact on the price-weighted index than a 100% increase in the stock price of company Z.
c) For a given percentage change in the stock price, company X will have a greater impact on the market-cap weighted index than companies Y & Z.
Transcribed Image Text:Company
X
Y
Z
As of December 31,
Stock Price Shares Outstanding
$25
$50
$100
20,000
20,000
1,000
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