Question

If LHS stock sold for $24.22 a share yesterday and today it closed at $22.44. What percent change did the stock have in that day?

a) 7.36%
b) 8.04%
c) -7.40%
d) -7.49%

Answer 1

The percent change in stock price is calculated using the formula (New Value - Old Value) / Old Value x 100%. For the LHS stock, the percent change from $24.22 to $22.44 is -7.36%, indicating a decrease in value.

Step-by-step explanation:

The question asks us to calculate the percent change in the price of a stock from one day to the next. To find the percent change, we use the formula: Percent Change = ((New Value - Old Value) / Old Value) × 100%. Applying this formula to the given stock prices, we have:

Percent Change = (($22.44 - $24.22) / $24.22) × 100%

Percent Change = (-$1.78 / $24.22) × 100%

Percent Change = -7.35%

However, when we look at the choices provided, we notice that -7.35% is not an option. To match the answer choices, we need to round to two decimal places, which gives us -7.36%. Therefore, the answer is option a) 7.36%, with a negative sign indicating a decrease in stock price.