Question

part 2 of 3
a companys stock began the day at $28.05 per share. that price drops by $1.04 each hour.
a. what is the price per share after 6 hours?
b. what will it be after 29 hours if this rate continues?
c. explain what the signs of the answers mean in this context.
d. the price per share after 6 hours is - $2.11.
b. what will it be after 29 hours if this rate continues?
a. the price per share after 29 hours will be - $2.11.
b. the price per share after 29 hours will be $21.81.
c. the price per share after 29 hours will be - $2.36.
d. the price per share after 29 hours will be $21.31.

Explanation:

(a):

Step1: Total drop in 6h

$6 \times 1.04 = 6.24$

Step2: Price after 6h

$28.05 - 6.24 = 21.81$

(b):

Step1: Total drop in 29h

$29 \times 1.04 = 30.16$

Step2: Price after 29h

$28.05 - 30.16 = -2.11$

(c):
Positive sign: Stock has positive value. Negative sign: Theoretically negative value (unrealistic in practice).

Answer:

a. $21.81
b. A. The price per share after 29 hours will be -$2.11.
c. Positive sign indicates the stock has positive value; negative sign means a theoretically negative value, which is not practically feasible.