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[answered] Assume that the DJIA stands at 10000.00 and the current div


Assume that the DJIA stands at 10000.00 and the current divisor is 0.25. One of the stocks in the index is priced at $100 and it splits 2 : 1. Based on this information, answer the following questions:


Part 1: What is the sum of the prices of all the shares in the index before the stock split?

Part 2: What is the value of the index after the split? Explain.

Part 3: What is the sum of the prices of all the shares in the index after the split?

Part 4: What is the divisor after the split??(Points : 30)


DJIA stands at 10000.00 and the current divisor is 0.25. One of the stocks in the index is

 

priced at $100 and it splits 2:1. Based on this information, answer the following

 

questions:

 

Part 1: What...

 


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