Question: In the previous problem, suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2014. What is the new divisor for the

In the previous problem, suppose that Douglas McDonnell shareholders approve a 3-for-1 stock split on January 1, 2014. What is the new divisor for the index? Calculate the rate of return on the index for the year ending December 31, 2014, if Douglas McDonnell's share price on January 1, 2015, is $39.33 per share.

Price Shares (millions) 1/1/13 1/1/14 1/1/15 $103 $106 $118 53 79 McDonnellmillions) Dynamics General International Rockwell 340 450 410 45 39 74 63

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