Compute the divisor for this index

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Reference no: EM131601568

Consider the following information regarding stocks A,B and c

Stock Day 1 price Day 2 price # of shares outstanding

A $44 $46 10

B $ 12 $10 50

C $77 $81 20

At the close of Day 1 you construct a price weighted index with a beginning index value of 100.

1) compute the divisor for this index

2) compute the index value at the close of day 2

3) At the close of day 2, stock C splits two. Compute the new value of the divisor

4) Compute a value weighted index with an initial index value of 100, compute the index value at the end of day 2.

Reference no: EM131601568

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