Consider the following information regarding stocks A,B and c
Stock Day 1 price Day 2 price # of shares outstanding
A $44 $46 10
B $ 12 $10 50
C $77 $81 20
At the close of Day 1 you construct a price weighted index with a beginning index value of 100.
1) compute the divisor for this index
2) compute the index value at the close of day 2
3) At the close of day 2, stock C splits two. Compute the new value of the divisor
4) Compute a value weighted index with an initial index value of 100, compute the index value at the end of day 2.