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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
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 2-for-1 stock split on January 1, 2020. Price Shares (millions) 1/1/19 1/1/20 1/1/21 Douglas McDonnell 195 $ 97 $ 100 $ 113 Dynamics General 455 27 22 36 International Rockwell 230 56 45 62
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