Problem:
In May 2012, IBM was the highest priced stock in the DJIA and Alcoa was the lowest. On May 9, 2012, the DJIA opened at 12,719.01. The divisor at that time was .132457265. The closing price for IBM on May 8, 2012, was $271.48 and the closing price for Alcoa was $14.78. Suppose the next day the other 29 stock prices remained unchanged and IBM increased 3.6 percent.
Requirement:
Question 1: What would the new DJIA level be? Now assume only Alcoa increased by 3.6 percent. Find the new DJIA level. Please provide step by step solution and please show your work.