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2.) (6 points) There are two stocks, A and B, which make up a particular market cap weighted index. Given below are the closing prices
2.) (6 points) There are two stocks, A and B, which make up a particular market cap weighted index. Given below are the closing prices and number of shares outstanding for each stock for both yesterday and today. Stock B split 2-for-1 today before the market opened. After the split, what is the value of the index today after the market closes if the index contains stocks A and B? The index closed yesterday at 3,000.00 (this was before stock B split 2-for-1 and before the market opened today). Closing price of stock A Shares outstanding for stock A Closing price of stock B Shares outstanding for stock B Index value Yesterday $100 500 $44 1,000 3000.00 Today $106 500 $25 2,000
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