A price-weighted index consists of Stocks A, B, and C, which are priced at $38, $21, and $26 a share, respectively. The current index divisor is 2.7. What will the new index divisor be if Stock B undergoes a 3-for-1 stock split?
A)2.1684
B)2.2553
C)2.5890
D)2.7000
E)3.1447

Question

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The Answer of A price-weighted index consists of Stocks A, B, and C, which are priced at $38, $21, and $26 a share, respectively. The current index divisor is 2.7. What will the new index divisor be if Stock B undergoes a 3-for-1 stock split?
A)2.1684
B)2.2553
C)2.5890
D)2.7000
E)3.1447

A Price-Weighted Index Consists of Stocks A, B, and C