Question: 2.) (8 points) There are two stocks, A and B, which make up a particular market-cap weighted index. Given below are the closing prices and

2.) (8 points) There are two stocks, A and B, which make up a particular market-cap weighted index. Given below are the closing prices and number of shares outstanding for each stock for both yesterday and today. Stock B split 2-for-1 today before the market opened. After the split, what is the value of the index today after the market closes if the index contains stocks A and B? The index closed yesterday at 4,000; this closing value was before stock B split 2-for-1 and before the market opened today. Closing price of stock A Shares outstanding for stock A Closing price of stock B Shares outstanding for stock B Index value Yesterday $120 400 $42 1,000 4,000 Today $125 400 $23
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