Currently the S&P500 index is at 2,789.82. The current Base period is such that the denominator of the index is 2,500. The Numerator of the index goes up to 7,250,000 because of a merger of two companies and the introduction of a new company into the index. Calculate the new base period denominator of the index. Calculate the new base period denominator of the index.

Question

Business

Tamia Estrada

9 February, 19:03

Currently the S&P500 index is at 2,789.82. The current Base period is such that the denominator of the index is 2,500. The Numerator of the index goes up to 7,250,000 because of a merger of two companies and the introduction of a new company into the index. Calculate the new base period denominator of the index. Calculate the new base period denominator of the index.

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Answers (2)

Know the Answer?

Alicia Blevins · Answer 1

Check the explanation

Explanation:

Numerator/denominator = 7250000/2500

= 2900

So from given numerator and denominator current value should be 2900

But it is 2789.82 so difference = 2900-2789.82=110.18

Current S&p value = numerator / denominator

New base Denominator = 7250000/2789.82

New base denominator = 2598.7

Jolie Kline · Answer 2

Answer: 2598.7

Explanation:

Numerator/denominator = 7250000/2500

= 2900

So from given numerator and denominator current value should be 2900

But it is 2789.82 so difference = 2900-2789.82=110.18

Current S&p value = numerator / denominator

New base period denominator = 7250000/2789.82

New base period denominator = 2598.7