-Yesterday, the DJIA closed at 12,051.96. The divisor is 0.13402801. Today, every one of the stock in the index increase in value by $0.50 a share. What is today's DJIA index?

Question

Quizplus · Accepted Answer

To calculate the new DJIA index, we need to add up the new value of each stock and divide by the divisor:

New value of each stock = (old value + $0.50)
New value of DJIA = (Sum of new stock values) / Divisor

Since every stock increased by the same amount, we can simplify the calculation:

New value of DJIA = [(old value + $0.50) * Number of stocks] / Divisor

Number of stocks in the DJIA is currently 30.

Plugging in the given values, we get:

New value of DJIA = [(12,051.96 + $0.50) * 30] / 0.13402801 = 12,163.88

Therefore, the answer is D: 12,163.88.

-Yesterday, the DJIA Closed at 12,051