USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)

question 3

Multiple Choice

USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)
*2:1 Split on Stock Z after Close on Jan. 13, 2005
**3:1 Split on Stock X after Close on Jan. 15, 2005
The base date for index calculations is January 13, 2005
-Refer to Exhibit 4.2. Calculate a value weighted index for Jan. 13th if the initial index value is 100.

• A) 111.54
• B) 100
• C) 102.31
• D) 123.07
• E) 143.25

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Definitions:

Selling Price

The cost at which customers can purchase a product or service.

Target Profit

The amount of net income a company aims to achieve for a specified period as part of its financial and operational planning.

Unit Sales

The total number of individual units sold by a company in a specific period.

Margin Of Safety

The difference between actual sales and the break-even point, indicating the extent to which sales can drop before the company incurs a loss.