Look back at Problem 1. Assume that Able undergoes a 1-for-2 reverse stock split. What is the

Question:

Look back at Problem 1. Assume that Able undergoes a 1-for-2 reverse stock split. What is the new divisor?

Data From Problem 1

Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $93, $312, and $78, respectively. If Baker undergoes a 2-for-1 stock split, what is the new divisor for the price-weighted index?

Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing...