There are two stocks, A and B, which make up a particular price weighted index....
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There are two stocks, A and B, which make up a particular price weighted index. Given below are the closing prices and number of shares outstanding for each stock for yesterday and today. Stock B split 2-for-1 today before the market opened. What is the value of the index after the close today if the index contains stocks A and B and closed yesterday at 100 (before stock B split 2-for-1)? Closing price of stock A Shares outstanding for stock A Closing price of stock B Shares outstanding for stock B Index value Yesterday $120 100 $80 200 100 Today $115 100 $37 400
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