1. Consider the following three stocks:

Stock Price Number of shares outstanding

Apple $240 100

MSFT $152 200

Boeing $130 300

1. Calculate the price-weighted index constructed with the three stocks using a divisor of 0.165897
2. How would the divisor (in part (a) above) change if Boeing pays 20 percent stock dividend and the stock of MSFT is split 3 for 1?
3. Calculate the Value-weighted index constructed with the three stocks using a divisor of 100.
4. How would the divisor (in part (a) above) change if Boeing pays 20 percent stock dividend and the stock of MSFT is split 3 for 1?