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What will the new index divisor be after Day 1 if stock A undergoes a 2-for-1 stock split? Assume Day 1 divisor is 3. Show
What will the new index divisor be after Day 1 if stock A undergoes a 2-for-1 stock split? Assume Day 1 divisor is 3. Show your work, otherwise there will be no points.
| Stock | Day 1 | Day 2 |
| A | $20 | $11* 2 for 1 splits |
| B | $30 | $33 |
| C | $40 | $42 |
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Financial Markets and Institutions
Authors: Jeff Madura
12th edition
9781337515535, 1337099740, 1337515531, 978-1337099745
