Based on the following stock price and shares outstanding information, use the Dow Jones industrial average to solve, December 31, 2018 December 31, 2019 Price Shares Shares Outstanding Price Outstanding Stock K 20 100,000,000 32 100,000,000 Stock M 80 2,000,000 45 4,000,000* Stock R 40 25,000,000 42 25,000,000 *Stock split two-for-one during the year. a. Compute the percentage change in the value of each index during the year. b. Explain the difference in results between the two indexes.

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter16: Financial Statement Analysis
Section: Chapter Questions
Problem 2MAD
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Based on the following stock price and shares
outstanding information, use the Dow Jones
industrial average to solve, December 31, 2018
December 31, 2019 Price Shares Shares
Outstanding Price Outstanding Stock K 20
100,000,000 32 100,000,000 Stock M 80
2,000,000 45 4,000,000* Stock R 40 25,000,000
42 25,000,000 *Stock split two-for-one during the
year. a. Compute the percentage change in the
value of each index during the year. b. Explain the
difference in results between the two indexes.
Transcribed Image Text:Based on the following stock price and shares outstanding information, use the Dow Jones industrial average to solve, December 31, 2018 December 31, 2019 Price Shares Shares Outstanding Price Outstanding Stock K 20 100,000,000 32 100,000,000 Stock M 80 2,000,000 45 4,000,000* Stock R 40 25,000,000 42 25,000,000 *Stock split two-for-one during the year. a. Compute the percentage change in the value of each index during the year. b. Explain the difference in results between the two indexes.
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