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The following three defense stocks are to be combined into a stock Index In January 2013 (perhaps a portfolilo manager belleves these stocks are an

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The following three defense stocks are to be combined into a stock Index In January 2013 (perhaps a portfolilo manager belleves 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 Price Shares (millons) 1/1/13 /1/14 1/1/15 Douglas McDonnell 210 94 $97 111 45 450 Dynamics General International 36 31 350 65 54 68 Rockwell a. What is the new divisor for the index? (Do not round Intermedlate calculatlons Round your answer to 3 declmal 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 $34.19 per share. (Do not round Intermedlate calculatlons. Enter your answer as a percent rounded to 2 decimal places. Omit the "%" sign in your response.) Rate of return

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