Flotation costs of issuing common stocks may be substantial so they must be accounted for in the WACC

The payment of a dividend is a cash outflow from financing activities because the payment of a dividend provides owners with a return on their investment.

REITs securitize real estate assets and facilitate indirect investment in real estate market.

The percentage change in demand is +20%; the percentage change in price is -10% so the price elasticity of demand is -2.

First note that a price weighted index is derived by summing up the prices of the constituent stocks and then dividing the sum by a divisor. When the index is first constructed with N stocks, the divisor equals N.
Later on, when changes like stock splits or index composition take place, the divisor is adjusted so as to keep the value of the index constant across the change (Dow Jones Industrial Average is adjusted in this fashion, for e.g. and hence, its divisor is no longer 30 but a much lower value, less than
1 ). Just before stock B split, the value of the index was (24+12)/2 = 18. After the split, the price of B changed to 24 / 3 * 2 = 16 per share. Hence, the divisor changes from 2 to (16+12)/18 = 1.556. Therefore, the current index value equals (11+14)/1.556 = 16.07.