Question

The stock of Company A lost $2.11 throughout the day and ended at a value of $50.64. By what percentage did the stock decline?

Answer 1

To find the percentage decline of the stock, we can use the formula for percentage change:

\[
\text{Percentage Change} = \left( \frac{\text{Change in Value}}{\text{Original Value}} \right) \times 100
\]

Here, the change in value is \(-2.11\) (since the stock lost value), and the ending value of the stock is \(\$50.64\). To find the original value before the decline, we add the decline to the ending value:

\[
\text{Original Value} = \text{Ending Value} + \text{Decline} = 50.64 + 2.11 = 52.75
\]

Now we can substitute the values into the percentage change formula:

\[
\text{Percentage Change} = \left( \frac{-2.11}{52.75} \right) \times 100
\]

Calculating this step-by-step:

1. Calculate the fraction:
\[
\frac{-2.11}{52.75} \approx -0.03996
\]

2. Convert to percentage:
\[
-0.03996 \times 100 \approx -3.996
\]

Thus, the percentage decline is approximately:

\[
\text{Percentage Decline} \approx 3.996\%
\]

Rounding to two decimal places, we find:

\[
\text{Percentage Decline} \approx 4.00\%
\]

So, the stock of Company A declined by approximately **4.00%**.