Pt represents price at time t, and Qt represents shares outstanding at time t.  Stock A splits three for one in the last period.   Stock P0 Q0 P1 Q1 P2 Q2 A 115 600 120 600 40 1,800 B 100 600 95 600 95 600 C 75 700 80 700 80 700   Assuming that the divisor is equal to 3 at time 1, calculate the new divisor at time 2.

Linear Algebra: A Modern Introduction
4th Edition
ISBN:9781285463247
Author:David Poole
Publisher:David Poole
Chapter2: Systems Of Linear Equations
Section2.4: Applications
Problem 32EQ
icon
Related questions
Question

Pt represents price at time t, and Qt represents shares outstanding at time t. 

Stock A splits three for one in the last period.

 

Stock

P0

Q0

P1

Q1

P2

Q2

A

115

600

120

600

40

1,800

B

100

600

95

600

95

600

C

75

700

80

700

80

700

 

Assuming that the divisor is equal to 3 at time 1, calculate the new divisor at time 2. 

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Recommended textbooks for you
Linear Algebra: A Modern Introduction
Linear Algebra: A Modern Introduction
Algebra
ISBN:
9781285463247
Author:
David Poole
Publisher:
Cengage Learning
Algebra & Trigonometry with Analytic Geometry
Algebra & Trigonometry with Analytic Geometry
Algebra
ISBN:
9781133382119
Author:
Swokowski
Publisher:
Cengage