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P0 Q0 P1 Q1 A $130 100 140 100 B 60 200 50 200 C 200 400 214 400 Using Price Weighted Index, if stock
P0 | Q0 | P1 | Q1 | |
A | $130 | 100 | 140 | 100 |
B | 60 | 200 | 50 | 200 |
C | 200 | 400 | 214 | 400 |
Using Price Weighted Index, if stock C has a two-for-one stock split at t =1, what should be the new divisor at end of period t = 1?
1) Index value before stock split
2) Index value after stock split
3) New divisor
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