Asset Valuation（资产估价）相关习题7 price, center, border, companies, face

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The table below lists information on price per share and shares outstanding for three companies Lair Enterprises, Kurlew, Inc., and Mowe, Ltd.

	As of Beginning of Year		As of End of Year
Stock	Price Per Share ($)	# Shares Outstanding	Price Per Share ($)	# Shares Outstanding
Lair	15	10,000	10	10,000
Kurlew	45	5,000	60	5,000
Mowe	90	500	110	500

Assume that at the beginning of the year, the value of the market-weighted index was 100. The one-year return on the market-weighted index is closest to:

A) 30.0%.

B) 13.33%.

C) 8.33%.

D) 7.14%.

The correct answer was C) 8.33%.

Expand the table as follows:

	As of Beginning of Year 1			As of End of Year 1
Stock	Price Per Share (in $)	# Shares Outstanding	Market Capitalization (in $)	Price Per Share (in $)	# Shares Outstanding	Market Capitalization (in $)
Lair	15	10,000	150,000	10	10,000	100,000
Kurlew	45	5,000	225,000	60	5,000	300,000
Mowe	90	500	45,000	110	500	55,000
Total	150		420,000	170		455,000

First, we will calculate the year-end market-weighted index value, then we will calculate the return percentage.

Value of market-weighted index =
[(market capitalization_year-end) / (market capitalization_{beginning of year})]* Beginning index value
= (455,000 / 420,000) * 100 = 108.33

One-Year Return = [(Index value_year-end / Index value_{beginning of year}) -1]* 100
= [ (108.33 / 100) -1] * 100％ = 8.33%.

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mycutesky

c

hzjzh

d[em01]

coolcobra

[em01]

yangdr

c

churchill

c

starfishz

I think it's (C)

金哲

thanks

aqsz

C