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At the end of trading on day 1, a price-weighted index's value is 995.2. If stock Z undergoes a 2-for-1 stock split after the market
At the end of trading on day 1, a price-weighted index's value is 995.2. If stock Z undergoes a 2-for-1 stock split after the market closes on day 1, what is the new divisor? Stock Day 1 Day 2 Day 1 Day 2 closing closing Shares Shares price (P1) price (P2) (Q1) (Q2) X $45 $40 3,000,000 3,000,000 Y $33 $32 6,000,000 6,000,000 Z $68 $34 4,000,000 8,000,000 OA) 0.1454 B) 0.0978 OC) 0.1105 D) 0.1032
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