Ask Question
23 April, 15:16

Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $94, $312, and $90, respectively. If Baker undergoes a 2-for-1 stock split, what is the new divisor for the price-weighted index?

+5
Answers (1)
  1. 23 April, 19:05
    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
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $94, $312, and $90, respectively. If Baker undergoes a ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers