Assume the Dow Jones Industrial Average index consisted of two stocks, POS and CLO prior to the end of trading hours yesterday. At the trading close, the ticker CLO is replaced by LOG with stock price $55. Assume the firm (old ticker: CLO, new ticker:LOG) has no change in their fundamental value. Prices are shown in the table below. What is the new divisor ??? Round your answer to three decimal places Please give a detailed explanation using formulas, not excel. A. 1.048 B. 1.078 C. 1.359 D. 0.736 E. 0.927 F. 2.000
Assume the Dow Jones Industrial Average index consisted of two stocks, POS and CLO prior to the end of trading hours yesterday. At the trading close, the ticker CLO is replaced by LOG with stock price $55. Assume the firm (old ticker: CLO, new ticker:LOG) has no change in their fundamental value. Prices are shown in the table below. What is the new divisor ??? Round your answer to three decimal places Please give a detailed explanation using formulas, not excel. A. 1.048 B. 1.078 C. 1.359 D. 0.736 E. 0.927 F. 2.000
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
Assume the Dow Jones Industrial Average index consisted of two stocks, POS and
CLO prior to the end of trading hours yesterday. At the trading close, the ticker CLO is
replaced by LOG with stock price $55. Assume the firm (old ticker: CLO, new ticker:LOG)
has no change in their fundamental value. Prices are shown in the table below. What is the
new divisor ??? Round your answer to three decimal places
Please give a detailed explanation using formulas, not excel.
A. 1.048
B. 1.078
C. 1.359
D. 0.736
E. 0.927
F. 2.000
B. 1.078
C. 1.359
D. 0.736
E. 0.927
F. 2.000
![Stock
POS
CLO/LOG
DJIA
Price
$110
$98
$153
Price After
Addition
$110
$55](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F5319440a-5c35-4699-b14c-122abc814017%2F4c42d4dc-f26f-43b7-8321-fd3c2323dbf7%2Fhwwm9pl_processed.png&w=3840&q=75)
Transcribed Image Text:Stock
POS
CLO/LOG
DJIA
Price
$110
$98
$153
Price After
Addition
$110
$55
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