In this question, we're going to go step by step to get the final price of the share.
We know that the stock started off as $40 per share, so that would be our starting value.
The stock dropped by 10%, so let's calculate the drop in price.
40 · 0.10 = 4
40 - 4 = 36
On Monday, the value of the stock was $36
On Tuesday, the stock dropped by $10, so calculate that drop as well
36 - 10 = 26
On Tuesday, the stock value is at $26
The stock increased by 45%, so we need to calculate the increase.
26 · 1.45 = 37.70
This means that the final price of the share was $37.70
Answer:
$37.70
