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	360		$	65		$	69		$	83
Dynamics General	450			52			46			60
International Rockwell	170			81			70			86

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

New divisor:

b. Calculate the rate of return on the index for the year ending December 31, 2020, if Douglas McDonnells share price on January 1, 2021, is $25.10 per share. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Rate of Return