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The following three defense stocks are to be combined into a stock index in January 2 0 1 6 ( perhaps a portfolio manager believes

The following three defense stocks are to be combined into a stock index in January 2016(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 1,2017.
Price
Shares
(millions)1/1/161/1/171/1/18
Douglas McDonnell 215 $ 64 $ 68 $ 82
Dynamics General 455726478
International Rockwell 25010190106
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 31,2017, if Douglas McDonnells share price on January 1,2018, is $24.73 per share. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

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