In three successive years the price of the common shares of Bedrock Resources Ltd. fell 40%, 60%, and 70% ending the third year at 50 cents.
a. What was the share price at the beginning of the three-year skid?
b. How much (in dollars and cents) did the share price drop in the second year?
x(.60)(.40)(.30) = 0.50
x = 6.94
The drop the 2nd year is
6.94(.60)(.60) = 2.50