Part 1) DJIA records the changes in prices of 3 stocks: A, B, and C. a) Assume initially the prices of these stocks are $60, $25, and $65. What is the DJIA? b) Suppose the company C declares a 2-for-1 stock splits. If the closing prices of the three companies the day split becomes effective are $61, $24.50, and $32 respectively, what is the new DJIA?

Part 2) Now assume that the first two companies, A and B, merge together. The editorial board of WSJ adds a new corporation, D, to the list. The 4 companies closing prices the day before the merger of A and B becomes effective are $62.50, $22.50, $33.0, and $30. If the closing prices of stocks of the 3 companies at the end of the trading day after the merger are $83.5, $32, and $29 what is the new DJIA?

Part 3) Assume DJIA records the changes in prices of 3 stocks: A, B, and C. Assume initially the prices of these stocks are $40, $20, and $30. Now assume that the editorial board of WSJ decides to replace company B with another company, D. The closing prices of the four companies the day before the replacement become effective are $61.5, $24, $33, and $40. If the closing prices of A, C, and D the day replacement becomes effective are $62, $33.5, and $41, what is the new DJIA?