24. Consider the following three stocks:

stock price number of shares outstanding

Stock A $40 200

Stock A $70 500

Stock A $10 600 Assume at these prices that the value-weighted index constructed with the three stocks is 490. What would the index be if stock B is split 2 for 1 and stock C 4 for 1? A) 355 B) 430 C) 1000 D) 490 E) 265

34. A 5.5% 20-year municipal bond is currently priced to yield 7.2%. For a taxpayer in the 33% marginal tax bracket, this bond would offer an equivalent taxable yield of

A) 8.20% B) 4.82% C) 10.75% D) 11.40%

Can you write a specific explanation, please?