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)		1/1/16			1/1/17			1/1/18
Douglas McDonnell	350		$	65		$	69		$	81
Dynamics General	450			25			19			33
International Rockwell	210			54			43			57

a. What is the new divisor for the index? (Do not round intermediate calculations. Round your answer to 3 decimal places.)

New divosor?

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 $25.02 per share. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

rate of return ?