Please show your work.

The following three defense stocks are to be combined into a stock index in January 2013 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance) Suppose that Douglas McDonnell shareholders approve a 2-for-1 stock split on January 1, 2014. a. What is the new divisor for the index? (Do not round intermediate calculations. Round your answer to 3 decimal places.) New divisor __________ b. Calculate the rate of return on the index for the year ending December 31, 2014, if Douglas McDonnell's share price on January 1, 2015, is $24.73 per share. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Omit the '%" sign in your response.) Rate of return __________ %