84) Mason Materials is offering 800 shares in a Dutch auction IPO. The following bids have
been received:
Bidder
Quantity
Price
A
200
$
28
B
300
27
C
100
27
D
500
26
E
900
25
How many shares will be allocated to Bidder A?
A) 0
B) 80
C) 125
D) 145
E) 200
85) Juno Markets is offering 900 shares in a Dutch auction IPO. The following bids have been
received:
Bidder
Quantity
Price
A
100
$
18
B
300
$
18
C
400
$
16
D
200
$
15
E
800
$
14
How much will Bidder B have to spend to purchase all of the shares that have been allocated to
him?
A) $4,050.00
B) $4,212.00
C) $4,800.00
D) $5,200.00
E) $5,700.00
86) An index consists of the following securities and has an index divisor of 3.0. What is the
price-weighted index return?
Stock
Shares O/S
Begin Price
End Price
A
3,500
$
20
$
24
B
6,000
$
15
$
10
C
4,000
$
28
$
36
A) 9.43 percent
B) 9.67 percent
C) 10.53 percent
D) 10.91 percent
E) 11.11 percent
87) An index consists of the following securities and has an index divisor of 3.0. What is the
price-weighted index return?
Index
Beginning
Ending
Stock
Shares OS
Share Price
Share Price
D
1,000
$
26
$
32
E
4,000
$
30
$
28
F
3,000
$
19
$
22
A) 9.33 percent
B) 10.35 percent
C) 11.54 percent
D) 12.33 percent
E) 13.00 percent
88) An index consists of the following securities and has an index divisor of 3.0. What is the
price-weighted index return?
Stock
Shares Outstanding
Beginning Share
Price
Ending Share Price
A
4,000
$
21
$
16
L
1,000
$
49
$
61
S
3,000
$
37
$
38
A) -4.76 percent
B) -2.05 percent
C) 3.09 percent
D) 5.17 percent
E) 7.48 percent
89) An index consists of the following securities and has an index divisor of 2.0. What is the
price-weighted index return?
Index Stock
Shares OS
Beginning Share
Price
Ending Share Price
S
4,800
$
55
$
51
T
3,500
$
32
$
36
A) −1.69 percent
B) −0.78 percent
C) 0.00 percent
D) 0.92 percent
E) 1.43 percent
90) A price-weighted index consists of stocks A, B, and C which are priced at $38, $21, and $26
a share, respectively. The current index divisor is 2.7. What will the new index divisor be if stock
B undergoes a 3-for-1 stock split?
A) 2.1684
B) 2.2553
C) 2.5890
D) 2.7000
E) 3.1447
91) A price-weighted index consists of stocks A, B, and C which are priced at $50, $35, and $15
a share, respectively. The current index divisor is 2.75. What will the new index advisor be if
stock A undergoes a 5-for-1 stock split?
A) 0.40
B) 0.65
C) 1.00
D) 1.65
E) 1.85
92) A price-weighted index consists of stocks A, B, and C which are priced at $30, $12, and $18
a share, respectively. The current index divisor is 2.40. If stock C undergoes a 1-for-3 reverse
stock split, the new index divisor will be:
A) 1.92
B) 2.11
C) 2.20
D) 3.08
E) 3.12
93) An index consists of the following securities. What is the value-weighted index return?
Value-weighted
Stock
Shares O/S
Beginning Share
Price
Ending Share Price
T
5,000
$
20
$
28
Z
2,000
$
38
$
40
A) 12.75 percent
B) 15.00 percent
C) 16.50 percent
D) 18.75 percent
E) 25.00 percent
94) An index consists of the following securities. What is the value-weighted index return?
Stock
Shares Outstanding
Beginning Share
Price
Ending Share Price
C
1,000
$
32
$
38
K
4,000
$
22
$
23
S
6,000
$
57
$
55
A) −0.43 percent
B) −1.46 percent
C) 4.43 percent
D) 4.51 percent
E) 4.62 percent
95) An index consists of the following securities. What is the value-weighted index return?
Stock
Shares O/S
Begin Price
End Price
C
4,500
$
18
$
22
T
7,500
$
12
$
11
W
3,500
$
32
$
36
A) 3.72 percent
B) 5.09 percent
C) 6.61 percent
D) 7.07 percent
E) 8.17 percent
96) You have the following information:
Stock
Shares Outstanding
Beginning Share
Price
Ending Share Price
A
1,000
$
35
$
38
B
2,000
$
22
$
23
You want the beginning price-weighted index of these two stocks to be 100. Given this, what is
the ending index value?
A) 93.44
B) 98.10
C) 107.02
D) 108.36
E) 110.40
97) You have the following information:
Stock
Shares OS
BOY Price
EOY Price
L
3,000
$
15
$
18
K
57,000
$
31
$
35
You want the beginning price-weighted index of these two stocks to be 500. Given this, what is
the ending index value?
A) 408.33
B) 487.08
C) 511.19
D) 576.09
E) 612.24
98) An index has a market value of $695,200 at the beginning of the period and $741,900 at the
end of the period. If you want the beginning index value to be 100, what is the ending index
value?
A) 104.73
B) 105.42
C) 105.67
D) 105.89
E) 106.72
99) Assume the DJIA closed at 15,150 last night. The divisor is 0.123017848. Assume that 29 of
the stocks in the index were unchanged today. One stock increased in value from $44.80 a share
yesterday to $47.90 a share today. What is the DJIA index value at the close of trading today?
A) 15,175.20
B) 15,208.30
C) 15,365.60
D) 15,412.20
E) 15,524.10
100) Yesterday, the DJIA closed at 12,309.16. The divisor is 0.123017848. Today, every one of
the stocks in the index increased in value by $0.40 a share. What is the value of today’s closing
DJIA?
A) 12,367
B) 12,407
C) 12,442
D) 12,564
E) 12,571
101) An order book displays the following information:
Buy Orders
Sell Orders
Shares
Price
Shares
Price
200
$
18.15
100
$
18.17
300
$
18.14
500
$
18.18
100
$
18.14
100
$
18.19
You place a market order to sell 200 shares. At what price will your order be executed?
A) $18.13
B) $18.14
C) $18.15
D) $18.16
E) $18.17
102) An order book displays the following information:
Buy Orders
Sell Orders
Shares
Price
Shares
Price
100
$
18.07
100
$
18.11
500
$
18.06
500
$
18.12
300
$
18.05
100
$
18.12
You place an order to sell 100 shares. At what price will your order be executed?
A) $18.05
B) $18.06
C) $18.07
D) $18.11
E) $18.12
103) Aurora Metals just sold 2 million shares through an IPO offering. The shares were offered
at $23.50 a share and all shares were sold. The firm received a total of $50,200,000 for this issue.
What was the spread?
A) 5.49 percent
B) 6.24 percent
C) 6.40 percent
D) 6.81 percent
E) 7.01 percent
104) Southaven Inc. is offering 1,000 shares in a Dutch auction IPO. The following bids have
been received:
Bidder
Quantity
Price
A
300
$
25
B
200
25
C
500
22
D
400
21
E
200
20
How much will the firm receive from this offering if the underwriter’s fee is 7.5 percent?
A) $17,905.75
B) $19,440.60
C) $22,385.00
D) $27,484.50
E) $31,095.30
105) An index consists of the following securities and has an index divisor of 2.0. What is the
price-weighted index return?
Stock
Shares O/S
Begin price
End Price
X
4,200
$
35
$
36
Y
3,800
$
30
$
29
A) −1.69 percent
B) −0.78 percent
C) 0.00 percent
D) 0.92 percent
E) 1.43 percent
106) An index consists of the following securities. What is the value-weighted index return?
Stock
Shares O/S
Begin Price
End Price
H
5,000
$
18
$
22
I
7,500
$
12
$
11
J
2,000
$
32
$
36
A) 3.72 percent
B) 5.09 percent
C) 6.61 percent
D) 7.07 percent
E) 8.40 percent
107) An order book displays the following information:
Buy Orders
Sell Orders
Shares
Price
Shares
Price
200
$
18.15
100
$
18.17
300
$
18.14
500
$
18.18
100
$
18.14
100
$
18.19
You place a market order to sell 500 shares. What will be the total you receive for your order?
A) $9,070
B) $9,072
C) $9,075
D) $9,085
E) $9,090