You bought an oil company stock for $83K per share. The price of the stock lost $16M during a six month period. Find the price of the stock at the end of the six months. How do I do this?
If K is thousand, and M is million, it is not possible.
I am not sure. That's what the questions says
Um...are we given how many shares?
To find the price of the stock at the end of the six-month period, we need to calculate the loss per share and then subtract it from the initial price.
To calculate the loss per share, we can use the formula:
Loss per share = Total loss / Number of shares
Given that the stock lost $16M during the six-month period and you bought the stock for $83K per share, we need to convert million dollars to thousand dollars to have consistent units. So, $16M becomes $16,000K (since 1 million = 1,000 thousand).
Let's assume you bought x number of shares. Multiplying the initial price per share ($83K) by the number of shares (x) gives us the total initial investment:
Total initial investment = Initial price per share × Number of shares
= $83000 × x
Now, we can calculate the loss per share:
Loss per share = Total loss / Number of shares
= $16,000K / x
We can now calculate the price of the stock at the end of the six-month period by subtracting the loss per share from the initial price per share:
Price at the end = Initial price per share - Loss per share
= $83K - (16,000K / x)
Please note that x represents the number of shares you initially bought.