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.
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.
MATLAB: An Introduction with Applications
6th Edition
ISBN:9781119256830
Author:Amos Gilat
Publisher:Amos Gilat
Chapter1: Starting With Matlab
Section: Chapter Questions
Problem 1P
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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
Step 1: According to given information
Stock | P0 | Q0 | P1 | Q1 | P2 | Q2 |
| A | 115 | 600 | 120 | 600 | 40 | 1800 |
| B | 100 | 600 | 95 | 600 | 95 | 600 |
| C | 75 | 700 | 80 | 700 | 80 | 700 |
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