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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

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 420 $ 63 $ 67 $ 84
Dynamics General 450 53 47 61
International Rockwell 250 82 71 87

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

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