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dem82 [27]
3 years ago
14

Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $94, $312, and $90, respectively. If Baker u

ndergoes a 2-for-1 stock split, what is the new divisor for the price-weighted index?
Business
1 answer:
WARRIOR [948]3 years ago
7 0

Answer: The new divisor for the price-weighted index is 0.77982

Explanation:

Divisor = [(94 + 312/2 + 90) / [(94 + 312 + 90) / 3]

= 0.77982

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