Math Problem Statement
Solution
To solve this problem, let's first break it down using the information given in the image.
Information from the Table:
-
Company 1:
- Current Share Price: £0.67
- Outstanding Shares: 3,530,601
-
Company 3:
- Current Share Price: £0.95
- Outstanding Shares: 3,507,341
The formula for Market Value is:
Step 1: Initial Market Values of Company 1 and Company 3
- Company 1 Market Value:
- Company 3 Market Value:
Step 2: Adjust the Market Values based on the changes
-
Company 1: Market value dropped by 6.5%. Therefore, its new market value is:
-
Company 3: Share price increased by 3.2%. The new share price is: Therefore, the new market value is:
Step 3: Calculate the Difference in Market Value
Now, let's compute the difference in the new market values between Company 1 and Company 3:
However, this difference is not among the options listed in the image. The discrepancy could be due to rounding differences or some minor adjustments. Please verify the values or give further clarification if needed.
Do you need any further details or calculations? Here are some follow-up questions you might want to consider:
- Would you like a breakdown of how each percentage change affects the market values?
- Are there any rounding rules I should apply for further accuracy?
- Would you like me to calculate the difference using other methods (e.g., using different exchange rates)?
- Do you want to understand how share prices affect market value calculations more deeply?
- Do you need further explanations regarding the significance of outstanding shares?
Tip: Always check for rounding in financial calculations, as it can significantly affect the final results when dealing with large numbers.
Ask a new question for Free
By Image
Drop file here or Click Here to upload
Math Problem Analysis
Mathematical Concepts
Percentage change
Market value calculation
Stock prices
Formulas
Market Value = Current Share Price * Outstanding Shares
New Market Value = Original Market Value * (1 ± Percentage Change)
Theorems
-
Suitable Grade Level
Undergraduate Finance or Business Studies
Related Recommendation
Calculate Total Percentage Increase in Stock Value
Calculate Total Percentage Increase for Multiple Stocks with Different Growth Rates
Calculating Sequential Percentage Drops: From 80% to 90% of a Stock Price
Total Percentage Increase in Investor's Stock Account (15% & 20% Increases)
Stock Value Change After 40% Drop and 75% Increase