A stock index consists of 2 stocks: Company A has 50 shares outstanding at $2 each

Finance Jan 14, 2021

A stock index consists of 2 stocks: Company A has 50 shares outstanding at $2 each. Company B has 10 shares outstanding valued at $12 each. If the price of Company A's stock increases to $5 per share, and Company B's stock splits 2 for 1 and is priced at $8, Calculate the price index and the value index before the split and after the split What is the new divisor for the price index after the split.

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