The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance). Suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2020. Douglas McDonnell Dynamics General International Rockwell New divisor Shares (millions) 430 535 210 Rate of return 1/1/19 $108 38 67 % Price a. What is the new divisor for the index? (Do not round intermediate calculations. Round your answer to 3 decimal places.) 1/1/20 $114 34 56 1/1/21 $131 48 70 b. Calculate the rate of return on the index for the year ending December 31, 2020, If Douglas McDonnell's share price on January 1, 2021, is $41.08 per share. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

The following three defense stocks are to be combined into a stock index in January 2019 (perhaps a portfolio manager believes these stocks are an approprlate benchmark for his or her performance). Suppose that Douglas McDonnell shareholders approve a 3 for-1 stock split on January 1,2020. a. What is the new divisor for the index? (Do not round intermediate calculations. Round your answer to 3 decimal places.) b. Calculate the rate of return on the index for the year ending December 31,2020 . If Douglas McDonnelr's share price on January 1. 2021 is $11.08 per share (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)