Masukh The following three defense stocks are to be combined into a stock index in January 2022 (perhaps a portfolio manager believesthese stocks are an appropriate benchmark for his or her performance). Suppose that Douglas McDonnell shareholders approve a 3.for-1 stock split on January 1, 2023.Douglas McDonnellDynamics GeneralInternational RockwellNew divisorShares(millions)340Rate of return450410%1/1/22$ 1034574Price1/1/23$1063963a. What is the new divisor for the index?Note: Do not round intermediate calculations. Round your answer to 3 decimal places.1/1/24$1185379b. Calculate the rate of return on the index for the year ending December 31, 2023, if Douglas McDonnell's share price on January 1,2024, is $39.33 per share.Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.

The division of a company's current shares into multiple shares is referred to as a stock split. The…

a. What is the new divisor for the index? Note: Do not round intermediate calculations. Round your answer to 3 decimal places. New divisor b. Calculate the rate of return on the index for the year ending December 31, 2023, if Douglas McDonnell's share price on January 1, 2024, is $39.33 per share. Note: Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places. Rate of return