Question

Baltic Broadcasting, Carvero Pharmaceuticals, and Denison Manufacturing are publicly traded companies. Baltic has a share price of $55 and there are currently 1,000,000 shares outstanding. Carvero has a share price of $150 and there are 200,000 shares outstanding. And Denison has a share price of $50 and 700,000 shares are outstanding. If you were to build a value-weighted index that contains these three firms, what percentage of the index would be composed of Baltic stock?

Name: baltic broadcasting carvero pharmaceuticals and denison manufacturing are publicly traded companies baltic has a share price of 55 and there are currently 1000000 shares outstanding carvero 56142
Uploaded: 2022-08-08T01:39:51-08:00
Duration: 7 min 31 s
Channel: Azat Nurmukhametov
Description: baltic broadcasting carvero pharmaceuticals and denison manufacturing are publicly traded companies baltic has a share price of 55 and there are currently 1000000 shares outstanding carvero 56142

          Baltic Broadcasting, Carvero Pharmaceuticals, and Denison Manufacturing are publicly traded companies.  Baltic has a share price of $55 and there are currently 1,000,000 shares outstanding.  Carvero has a share price of $150 and there are 200,000 shares outstanding.  And Denison has a share price of $50 and 700,000 shares are outstanding.  If you were to build a value-weighted index that contains these three firms, what percentage of the index would be composed of Baltic stock?

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Horngren’s Cost Accounting

Srikant M. Datar, Madhav V. Rajan 16th Edition

Instant Answer

Solved by Expert Azat Nurmukhametov

08/08/2022

Step 1

- Baltic Broadcasting: \[ \text{Market Cap} = \text{Share Price} \times \text{Number of Shares} = 55 \times 1,000,000 = 55,000,000 \] - Carvero Pharmaceuticals: \[ \text{Market Cap} = \text{Share Price} \times \text{Number of Shares} = 150 \times Show more…

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Baltic Broadcasting, Carvero Pharmaceuticals, and Denison Manufacturing are publicly traded companies. Baltic has a share price of $55 and there are currently 1,000,000 shares outstanding. Carvero has a share price of $150 and there are 200,000 shares outstanding. And Denison has a share price of $50 and 700,000 shares are outstanding. If you were to build a value-weighted index that contains these three firms, what percentage of the index would be composed of Baltic stock?