e the data below to determine which of the statements is most accurate? a)  For a given percentage change in stock price, company Y will have less impact on the market-cap weighted index as company Z.   b)  A 100% increase in the stock price of company X will have a smaller impact on the price-weighted index than a 100% increase in the stock price of company Z.   c)  For a given percentage change in the stock price, company X will have a greater impact on the market-cap weighted index than companies Y & Z.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter14: Corporation Accounting
Section: Chapter Questions
Problem 11MC: A company issued 30 shares of $.50 par value common stock for $12,000. The credit to additional...
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Use the data below to determine which of the statements is most accurate?

a)  For a given percentage change in stock price, company Y will have less impact on the market-cap weighted index as company Z.
 
b)  A 100% increase in the stock price of company X will have a smaller impact on the price-weighted index than a 100% increase in the stock price of company Z.
 
c)  For a given percentage change in the stock price, company X will have a greater impact on the market-cap weighted index than companies Y & Z.
Company
X
Y
Z
As of December 31,
Stock Price Shares Outstanding
$25
$50
$100
20,000
20,000
1,000
Transcribed Image Text:Company X Y Z As of December 31, Stock Price Shares Outstanding $25 $50 $100 20,000 20,000 1,000
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