Question

If each company that made up the Dow Jones Industrial Average increased the number of their shares outstanding by 10%, but the share prices did not change, the value of the index would: Group of answer choices decrease since there are more shares outstanding. increase by 10%. increase, but by less than 10%. not change.

Name: if each company that made up the dow jones industrial average increased the number of their shares outstanding by 10 but the share prices did not change the value of the index would group of 62748
Uploaded: 2023-06-16T04:01:18-08:00
Duration: 1 min 41 s
Channel: Madhur L
Description: if each company that made up the dow jones industrial average increased the number of their shares outstanding by 10 but the share prices did not change the value of the index would group of 62748

          If each company that made up the Dow Jones Industrial Average increased the number of their shares outstanding by 10%, but the share prices did not change, the value of the index would:
Group of answer choices
decrease since there are more shares outstanding.
increase by 10%.
increase, but by less than 10%.
not change.

Added by Eugene A.

Horngren’s Cost Accounting

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

Instant Answer

Solved by Expert Madhur L

06/16/2023

Step 1

The DJIA is a price-weighted index, meaning that the index value is calculated based on the prices of the stocks of the companies that make it up, rather than the number of shares outstanding. Show more…

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If each company that made up the Dow Jones Industrial Average increased the number of their shares outstanding by 10%, but the share prices did not change, the value of the index would: Group of answer choices decrease since there are more shares outstanding. increase by 10%. increase, but by less than 10%. not change.