Question

a companys stock began the day at $31.39 per share. that price drops by $1.13 each hour.
a. what is the price per share after 5 hours?
b. what will it be after 30 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 5 hours?
a. the price per share after 5 hours is -$2.01.
b. the price per share after 5 hours is -$2.51.
c. the price per share after 5 hours is $25.74.
d. the price per share after 5 hours is $25.49.

Explanation:

Step1: Determine the formula

The initial price is $31.39$ and it drops by $1.13$ per hour. The formula for the price $P$ after $h$ hours is $P = 31.39-1.13h$.

Step2: Calculate the price after 5 hours

Substitute $h = 5$ into the formula: $P=31.39 - 1.13\times5=31.39 - 5.65=25.74$.

Step3: Calculate the price after 30 hours

Substitute $h = 30$ into the formula: $P=31.39-1.13\times30=31.39 - 33.9=- 2.51$.

Step4: Interpret the signs

A positive answer means the stock price is above $0$. A negative answer means the stock price has dropped below $0$ (in a real - world context, this might imply the company is in significant financial trouble or there are some complex financial arrangements at play).

Answer:

a. C. The price per share after 5 hours is $25.74.
b. The price per share after 30 hours is -$2.51.
c. A positive answer means the stock price is above zero dollars. A negative answer means the stock price has dropped below zero dollars, indicating potential financial distress for the company.