Price/Share Shares Outstanding Stock X Y Z X Y Z 13-Jan $ 22.00 $ 36.00 $ XXXXXXXXXX1000 14-Jan $ 25.00 $ 33.00 $ XXXXXXXXXX2000 15-Jan $ 30.00 $ 29.00 $ XXXXXXXXXX2000 16-Jan $ 11.00 $ 32.00 $...

1. Price/Share Shares Outstanding

Stock X Y Z X Y Z

13-Jan $ 22.00 $ 36.00 $ 52.00 1000 2000 1000

14-Jan $ 25.00 $ 33.00 $ 28.00 1000 2000 2000

15-Jan $ 30.00 $ 29.00 $ 25.00 1000 2000 2000

16-Jan $ 11.00 $ 32.00 $ 23.00 3000 2000 2000

*2:1 Split on Stock Z after Close on Jan. 13

**3:1 Split on Stock X after Close on Jan. 15

The base date for index calculations is January 13

A) Refer to the exhibit above. Calculate a price weighted average for January 13th.

B) Refer to the exhibit above. What is the divisor at the beginning of January 14th?

C) Refer to the exhibit above. Calculate a value weighted index for January 13th if the initial index value is 100.

D) Refer to the exhibit above. Calculate a value weighted index for January 14th if the initial index value is 100.

2. PT Boats plans to pay a $2.25 a share dividend at the end of each of the next 2 years. At the end of year 3, it will pay a final liquidating dividend of $15 a share. After that, the company plans to close its doors permanently. What is the current value of this stock at a discount rate of 15 percent?

3. In 3-5 sentences, briefly explain the differences between private equity and public equity.

4. Kormex Industries stock pays annual dividends at an increasing rate of 3.5 percent annually. Next year's dividend is expected to be $2.42 per share. If you require a rate of return of 9.34 percent, what is the intrinsic value of this stock? Round your final answer to two decimal places (Ex. $0.00)