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%.