Consider a price-weighted market index composed of two securities, A and B, with prices of $16 and

Question:

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 Stock B undergoes a 3-for-l stock split
c. Stock A undergoes a 4-for-l stock split
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...