If the Market Prices of the 30 Stocks in the Dow

question 1

Multiple Choice

If the market prices of the 30 stocks in the Dow Jones Industrial Average all change by the same dollar amount on a given day,assuming there are no stock splits which stock will have the greatest impact on the average?

• A) The one with the highest price
• B) The one with the lowest price
• C) All 30 stocks will have the same impact
• D) The answer cannot be determined by the information given

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Definitions:

Profit Markup

The amount added to the cost price of goods to cover overhead and profit; a measure of the profit margin.

Restructuring Write-Offs

Expenses incurred when a company reorganizes its operations, including costs related to laying off employees, closing facilities, or exiting certain market segments.

Company Balance Sheets

A financial statement that shows an organization's assets, liabilities, and equity at a specific point in time, providing a snapshot of its financial condition.

Sustainable Operating Earnings

The portion of a company's profit that is expected to continue in the future, excluding any one-time items or unusual income.