Question

The stock of Company A gained 2% today to $79.56. What was the opening price of the stock in the beginning of the day?

Answer 1

Answer: $78

Step-by-step explanation:

From the question, we are informed that the stock of Company A gained 2% today to $79.56. The opening price of the stock in the beginning of the day will be calculated as:

= [100% / (100% + 2%)] × 79.56

= (100% / 102%) × 79.56

= 1/1.02 × 79.56

= 79.56/1.02

= 78

Therefore, opening price of the stock in the beginning of the day is $78