Question: Using the information in the table below, what would be the new divisor for a priceweighted index of the four local stocks if ABC declared

Using the information in the table below, what would be the

Using the information in the table below, what would be the new divisor for a priceweighted index of the four local stocks if ABC declared at 2:1 stock split after market close on t=1? Stock ABC DEF GHI JKL Price, t=0 100 45 21 26 Price, t=1 96 47 25 27 Shares (million) 100 500 1,200 450 2.96 3.02 2.98 3.00

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