The following three defense stocks are to be combined into a stock index in January 2022 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance). Suppose that Douglas McDonnell shareholders approve a 3- for-1 stock split on January 1, 2023. Douglas McDonnell Dynamics General International Rockwell New divisor Shares (millions) 1/1/22 340 $103 Rate of return 450 410 % 45 74 Price 1/1/23 a. What is the new divisor for the index? Note: Do not round intermediate calculations. Round your answer to 3 decimal places. $ 106 39 63 1/1/24 $118 53 79 b. Calculate the rate of return on the index for the year ending December 31, 2023, if Douglas McDonnell's share price on January 1, 2024, is $39.33 per share. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

The following three defense stocks are to be combined into a stock index in January 2022 (perhaps a portfolio manager believes these stocks are an appropriate benchmark for his or her performance). Suppose that Douglas McDonnell shareholders approve a 3. for-1 stock split on January 1,2023. o. What is the new divisor for the index? Note: 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, 2023, if Douglas McDonnell's share price on January 1, 2024, is $39.33 per share. Note: Do not round intermediate colculations. Enter your answer as a percent rounded to 2 decimol places