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Value of the divisor in a price-weighted market index
Consider a price-weighted market index composed of two securities, A and B, with prices of $16 and $30, respectively. The index divisor is currently 2.0. Calculate the value of the divisor if
a. Stock A issues a 5% stock dividend b. Stock B undergoes a 3-for-1 stock split c. Stock A undergoes a 4-for-1 stock split |
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