New divisor for the price-weighted index


Problem:

Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $36, $312, and $82, respectively. If Baker undergoes a 3-for-2 stock split,

Required:

Question 1: What is the new divisor for the price-weighted index? Please explain in detail and also provide step by step solution.

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Finance Basics: New divisor for the price-weighted index
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