Two years ago the shares of Diamond Strike Resources traded at a price of $3.40 per share. One year...

Question

Two years ago the shares of Diamond Strike Resources traded at a price of $3.40 per share. One year later the shares were at $11.50, but then they declined in value by 35% during the subsequent year. Calculate:a. The percent change in the share price during the first year.b. The current share price.View Solution:
Two years ago the shares of Diamond Strike Resources traded

Rochak · Accepted Answer

Share price (two years ago) = $3.40 
Share price (one year ago) = $11.50
The decline in the current year = 35%
a. Percentage change in the share price during the first year = (Share price (one year ago)/ Share price (two years ago)) – 1
= ($11.50/$3.40) - 1
= 228.24%
b.

Two years ago the shares of Diamond Strike Resources traded at a price of $3.40 per share. One year later the shares were at $11.50, but then they declined in value by 35% during the subsequent year....

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