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Consider the following three stocks: Stock Price Number of shares outstanding Stock A $60 800 Stock B $80 600 Stock C $20 700 Assume a

Consider the following three stocks:

Stock Price Number of shares outstanding

Stock A $60 800

Stock B $80 600

Stock C $20 700

Assume a price-weighted index with three stocks using an initial divisor of 10 is constructed. If Stock C is split 2 for 1, what will be the new divisor?

A) 10

B) 9.375

C) 11.25

D) 13.75

E) 15

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