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Consider the three stocks in the following table. P(t) represents price at time t, and Q(t) represents shares outstanding at time t. Stock C splits
Consider the three stocks in the following table. P(t) represents price at time t, and Q(t) represents shares outstanding at time t. Stock C splits two-for-one in the last period. What is the new divisor for the price-weighted index that is formed using Stocks A, B, and C if the starting divisor is 3?
P(1) Q(1) P(2) Q(2)
A 95 100 95 100
B 45 200 45 200
C 100 200 50 400
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