Question

a companys stock began the day at $37.08 per share. that price drops by $1.78 each hour.
a. what is the price per share after 6 hours?
b. what will it be after 22 hours if this rate continues?
c. explain what the signs of the answers mean in this context.
a. what is the price per share after 6 hours?
a. the price per share after 6 hours is -$2.33.
b. the price per share after 6 hours is -$2.08.
c. the price per share after 6 hours is $26.40.
d. the price per share after 6 hours is $26.15.

Explanation:

Step1: Calculate the total drop in 6 hours

The stock drops by $1.78$ per hour. For 6 hours, the total drop is $1.78\times6 = 10.68$.

Step2: Calculate the price per - share after 6 hours

The initial price is $37.08$. Subtract the total drop from the initial price: $37.08−10.68 = 26.40$.

Step1: Calculate the total drop in 22 hours

The stock drops by $1.78$ per hour. For 22 hours, the total drop is $1.78\times22=39.16$.

Step2: Calculate the price per - share after 22 hours

The initial price is $37.08$. Subtract the total drop from the initial price: $37.08 - 39.16=- 2.08$.

A positive answer (in part a) means the stock price is still above $0$ after the given number of hours. A negative answer (in part b) means that the stock price has dropped below $0$ after the given number of hours, which in a real - world context might imply the company is in severe financial trouble or some complex financial restructuring would be needed since stock prices don't actually go negative in a simple sense but this indicates a debt - like situation in terms of the value calculation based on the given model.

Answer:

C. The price per share after 6 hours is $26.40$.

For part b: