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    tucoquito's Avatar
    tucoquito Posts: 3, Reputation: 1
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    #1

    Jun 20, 2008, 06:44 PM
    Calculate the value of the divisor of 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
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
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    #2

    Jun 20, 2008, 08:21 PM
    Please see our guidelines for posting homework problems:

    https://www.askmehelpdesk.com/financ...-b-u-font.html
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