Financial Algebra 1st Edition Chapter 1 The Stock Market
Page 10 Problem 1 Answer
Given: The data for XYZ Corporation published at the close of two trading days.
To find: The difference between the high and low prices on May 12
Solution: We will use the table to find the high and low prize on the given date and find the difference On May12,
Difference between high and low price= High price− Low price
=51.40−50.60
=$0.8
The difference between the high and low prices on May 12 was$0.8
Page 11 Problem 2 Answer
Given: The data for XYZ Corporation published at the close of two trading days.
To find: The price at which XYZ Corporation closed on May 11
Solution: We can find the value of the closing price on May 11 by adjusting the closing price of May 12 by the value of change
Let x be the closing price on May
11 Closing Price on May12= Closing price on May11+ change
49.98=x+(−1.55) [Substitute values]
49.98=x−1.55 [Open brackets]
51.53=x [Add1.55 on each side]
XYZ Corporation closed on May11 at$51.53
Page 12 Problem 3 Answer
Given: Closing Price on May11=$51.53
Opening Price on May12=$49.90
To find The difference between the closing prices as a percent decrease.
Solution: We will use the formula
Change=open−close/close×100
=49.90−51.53/51.53×100
=−3.16%
The difference between the May 11 closing price and the May 12 opening price shows decrease of3.16%
Page 13 Problem 4 Answer
Given: Spreadsheet
To find: Formulas for cells E6 and F5
Solution: We will first write the formula in normal mathematical syntax and then convert it into spreadsheet format
E6 shows net change from May 5 to May 6
Formula for net change= close of current day− close of previous day
=D6−D5 [substitute cell names in formula]
F5 shows the percentage change from May 4 to May 5
Formula for percentage change=close of current day−close of previous day /close of previous day ×100
=D5−D4/D4×100 [substitute cell names in formula]
=(D5−D4)/D4*100 [convert to a spreadsheet formula]
For the given spreadsheet, the formula for cell: E6=D6−D5
F5=(D5−D4)/D4*100
Page 14 Problem 5 Answer
The quote of William Feather “One of the funny things about the stock market is that every time one person buys, another sells, and both think they are astute.”
points to the perception of people involved in stock trading.
The quote says that in the stock market when a person sells another person buys, and both these people think that their analysis and decision are correct.
The person selling the stock may think he will earn a good return on his purchase if he sells now, and the person who buys may think that the market may grow and thus expect to earn a good income in the future.
Thus, the buyer and seller of the same stock both think that their trading price was an “astute” decision
Page 14 Problem 6 Answer
Given: For one share of Petro China Company Ltd: 52-week high price=$266.81 52-week low price=$112.11
To find The difference between the 52-week high and 52-week low price.
Difference= high price-low price
=266.81-112.11
=$154.7
The difference between the 52-week high and 52-week low price for one share of PetroChina Company Ltd is$154.7
Page 14 Problem 7 Answer
Given: For McDonald’s Corporation,
High price=$58.77
Low price=$57.42
To find : The difference between the day’s high and low prices.
Difference= high price-low price
=58.77-57.42
=$1.35
The difference between the day’s high and low prices for McDonald’s Corporation is$1.35
Page 14 Problem 8 Answer
Given: For Berkshire Hathaway Inc, sales in100s is 4.11
To find: The volume of the stock
Solution: Volume=4.11×100
=$411
The volume for the stock of Berkshire Hathaway Inc is$ 411
Page 14 Problem 9 Answer
Given: For McDonald’s Corporation, sales in100s is 106,077
To find: The volume of the stock
Solution: Volume=106,077×100
=$10,607,700
The volume for the stock of McDonald’s Corporation is$10,607,700
Page 14 Problem 10 Answer
Given: For Texas Instruments Inc, sales in100s is 288,012
To find: Volume of stock
Solution: Volume=288,012×100
=$28,801,200
The volume of the stock of Texas Instruments Inc is$28,801,200
Page 14 Problem 11 Answer
Given: For West pac Banking Corporation, sales in100s is 332.7
To find : Volume of stock.
Volume of stock =332.7×100
=$33,270
The volume of stock of West pac Banking Corporation is$33,270
Page 14 Problem 12 Answer
Given: For Texas Instruments Inc on April 22 is, Closing price=$28.85 Change=−1.74
To find: The closing price on April 21
Solution: Closing price on April21= Closing on April22− Change
=22.85−(−1.74)
=22.85+1.74
=$24.59
The closing price on April 21 for Texas Instruments Inc is $ 24.59
Page 14 Problem 13 Answer
Given: For Free port-McMoRan Copper & Gold Inc on April22,
Closing price=$118.65
Change=3.51
To find: The closing price on April 21
Solution: Closing price on April21= Closing price on April22−Change
=118.65−3.51
=$115.14
The closing price on April 21 for Free port-Mc MoRan Copper & Gold Inc is$115.14
Page 14 Exercise 1 Answer
Given: For Texas Instruments Inc, Closing on April21=$30.59
Closing on April22=$28.85
For Free port-Mc MoRan Copper & Gold Inc, Closing on April21=$115.14Closing on April22=$118.65
To find: Percentage of change in both the stocks
Solution: We will use the formula Change=Current closing−Previous closing/Previous closing×100
For Texas Instruments Inc,
Change=28.85−30.59/30.59×100
=−5.7% [rounded off to nearest tenth percent]
For Free port- Mc MoRan Copper & Gold Inc, Change=118.65−115.14/115.14×100
=3% [rounded off to nearest tenth percent]
The percent of net change from April 21to April 22 for,Texas Instruments Inc is−5.7% Free port- Mc MoRan Copper & Gold Inc is3%
Page 14 Exercise 2 Answer
Given: For Westpac Banking Corporation,(assuming the net change given in the question is for April23)
Net change for April23=−3.03
Close on April22=113.62
To find: The closing price for that day
Solution: We will use the formula: Closing=Previous day closing+Change
Close on April23=113.62−3.03
=110.59
If the April net change for Westpac Banking Corporation was −3.03, the closing price for that day was$110.59
Page 15 Exercise 3 Answer
The statement “The 52-week high can never be higher than the day’s high” is false.The 52-week
high is the highest rate in the entire year, so no day’s high can be higher than it.
The statement “The day’s high can never be higher than the 52-week high.” is correct.
The high rate in the entire year is represented by52−week high and so no daily high can be greater than that.
The statement “The day’s high can never be higher than the 52-week high” is true.
This is because the highest rate in the entire year is shown by the52−week high. So daily high can be equal to it but never higher than it.
Page 15 Exercise 4 Answer
Given: On April 25, Berkshire Hathaway Inc closed at $126,875 per share One year earlier, one share closed at $108,750
To find: Approximate one-year percent change
Solution: We will use the following formula, =Current price−last year price/last year price×100
One year percentage change=126875−108750/108750×100
On April 25, Berkshire Hathaway Inc closed at$126,875per share.
One year earlier, one share closed at$108,750. So the approximate one-year percent change was16.67%
Page 15 Exercise 5 Answer
For Intel Corp to convert the volume given in 1,000s into a volume given in 100swe will simply multiply the given volume by10.
So, H6=G6*10
The formula that will convert the volume given in1,000s into a volume given in 100sfor Intel Corp is:
H6=G6*10
Page 13 Exercise 6 Answer
For Yahoo! Inc to convert the volume given in1,000s into a volume given in100s we will simply multiply the given volume by10.
So,H9=G9∗10
The formula that will convert the volume given in1,000s into a volume given in100s is: H9=G9*10
Page 13 Exercise 7 Answer
For Build-A-Bear Workshop Inc to get the exact volume for each stock we will multiply the given volume in 1000s by1000.
So, I3=G3*1000
The formula that will store the exact volume for each stock in column I for Build-A-Bear Workshop Inc is: I3=G3*1000
Page 13 Exercise 7 Answer
For NETGEAR Inc to get the exact volume for each stock we will multiply the given volume in1000s
by1000. So, I8=G8∗1000
The formula that will store the exact volume for each stock in column I for NETGEAR Inc is: I8=G8*1000
Page 14 Exercise 8 Answer
Given: For NETGEAR Inc, Last on April25=C8Net change from April24=D8
To find: Formula to determine the close on April 24
Solution: We will use the formula, Close on April24=Last on April25−Change
In spreadsheet format, we will write it as, F8=C8−D8
Formula to determine the close on April 24 for NETGEAR Inc is F8=C8−D8
Page 14 Exercise 9 Answer
Given: For Ford Motor Co, Last on April25=C5Net change from April24=D5
To find: Formula to determine the close on April 24
Solution: We will use the formula, Close on April24= Last on April25−Change
In spreadsheet format, we will write it as, F5=C5−D5
A formula to determine the close on April 24 for Ford Motor Co isF5=C5−D5
Page 15 Exercise 10 Answer
To find the percentage change for Apple Inc on April 25 we will use the following formula
Percentage change=Change/April 24 close×100
In spreadsheet format, we will write it as: E2=D2/F2*100
Formula to determine the percent change for Apple Inc is E2=D2/F2*100.
Page 15 Exercise 11 Answer
To find the percentage change for Cooper Tire & Rubber Co on April25we will use the following formula Percentage change = Change / April 24 close ×100
In spreadsheet format, we will write it as:E4=D4/F4∗100
Formula to determine the percent change for Cooper Tire & Rubber Co is E4=D4/F4∗100.
Chapter 1 Solving Linear Equations
-
- Cengage Financial Algebra 1st Edition Chapter 1 Assessment The Stock Market
- Cengage Financial Algebra 1st Edition Chapter 1 Exercise 1.1 The Stock Market
- Cengage Financial Algebra 1st Edition Chapter 1 Exercise 1.3 The Stock Market
- Cengage Financial Algebra 1st Edition Chapter 1 Exercise 1.4 The Stock Market
- Cengage Financial Algebra 1st Edition Chapter 1 Exercise 1.5 The Stock Market
- Cengage Financial Algebra 1st Edition Chapter 1 Exercise 1.6 The Stock Market
- Cengage Financial Algebra 1st Edition Chapter 1 Exercise 1.7 The Stock Market
- Cengage Financial Algebra 1st Edition Chapter 1 Exercise 1.8 The Stock Market
- Cengage Financial Algebra 1st Edition Chapter 1 Exercise 1.9 The Stock Market