Question

Science Model

One share of Global Core Development Systems, Inc (an imaginary company with the abbreviation: Go-CDS) stock was priced at $14.59 on January 1, 2015. Your tasking in this problem is to determine how long does it take for a stockholder to double their money who has invested in Go-CDS? In other words, how long until the price per share has doubled.

Here are some facts about Go-CDS:

• Very stable company with a proven track record of manufacturing.
• The normal growth of Go-CDS's stock has averaged a monthly growth rate of 1.0000% in the share price. (This means that the price per share goes up by 1.0000% each month over the last month's price.)
• Beginning in March 2015, each time Go-CDS releases a quarterly report (on the 15th of the months of March, June, September and December each year), the stock share price increased immediately by 2.5000% due to the continuing, favorable outlook for Go-CDS's products in the marketplace. This trend continues throughout the time period.
• Due to a merger with another manufacturing company in the 15th month after 1/1/2015, the monthly growth rate increased to 1.1000% until the end of THAT calendar year (the last month of that year is the 24th month). Since then, the monthly growth rate increased to 1.5000% per month.
• Unfortunately, due to a bad set of business decisions in 2017, the Board fired the CEO which instantly cut the share price on July 5, 2017 to $7.30 (the 31st month). A new CEO was immediately hired on July 10, 2017.
• The company growth rate reset to 1.0500% per month after the new CEO was hired due to bad press.

Write a MATLAB program to solve the following questions: Use matlab to make plot

1. In what month does the stock exceed 2 times the price of $14.59?

2. Prepare a plot of the stock's per-month price movement over the course starting from the first month of year 2017 until the price has exceeded 2 times the price of $14.59. (You plot should start from month 25, and should cover the month that is the answer to Question #1.) You will need to adjust the plot routine to ONLY show these months.

To limit the plot to these months, add the following command after your xlabel and ylabel commands:

axis ([25, 56, 19, 31])

xticks (0:4:length(P))

yticks (0:2:31)

Answer 1

• One share of Global Core Development Systems, Inc [an imaginary company with the abbreviation: Go-CDS] stock was priced at $32.50 on January 1, 2015. Your tasking in this problem is to determine how long does it take for a stockholder to double their money w words, how long until the price per share has doubled. ho has invested in Go-CDS? In other Here are some facts about Go-CDS: Very stable company with a proven track record of manufacturing.
• The normal growth of Go-CDS's stock has averaged a monthly growth rate of 0.1% in the share price. (This means that the price per share goes up by 0.1% each month over the last month's price Beginning in March 2015, each time Go-CDS releases a quarterly report (on the 15t of the months of March, June, September and December each year), the stock share price increased immediately by 4.5% due to the continuing, favorable outlook for Go-CDS's products in the marketplace to a merger with another manufacturing company in the 17 month after 1/1/2015, the monthly growth rate increased to 1.15% until the end of THAT calendar year (after the 24th month)
• Beginning with month 25, the monthly growth rate increased to 1.25% per month. Unfortunately, due to a bad set of business decisions in 2018, the Board fired the CEO which instantly cut the share price on Oct 5, 2018 by S15.00 (the 34th month). A new CEO was immediately hired on Oct 10, 2018 The company growth rate reset to 1.05% per month after the new CEO was hired due to bad press. to solve the following questions Problem:
• Write a MATLAB program
• Question1 In what month does the stock exceed twice the price per share on Jan 1, 2015?
• Question 2: Prepare a plot of the stock's per-month price movement over the course of ONLY the years 2017 until the price has doubled ONLY (which is from months 25 until the answer to Question #1). You will need to adjust the plot routine to 0NLY show these months.
• To limit the plot to these months, add the following command o axis ([25,49,50, 701) This command sets the x-axis range to "25-48" and they ALSO, add the following command to put a note on your plot -axis range to "50-70" o text (40,52, 'Note: Price as of 1st of the month') This command adds text at coordinate: (40 months and S52).

% Global Core Develpment System

%stock pric variable sp_initial and variable t forc storing the month count from
%1/Jan/2015
sp_initial = 32.50;
t(1) = 1;
sp(1) = sp_initial;
monthly_rate = 0.001; % 0.1percent growth rate = 0.001
quarter_rate = 0.045; %4.5percent quaterly increase
%growth in first 16 month before merger on 17th month
for i = 2:16
t(i) = i;
sp(i) = sp(i-1)*(1 + monthly_rate);
  
if(mod(i,3) == 0)
sp(i) = sp(i) * (1 + quarter_rate);
end
end

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%merger growth in 17th month to 24th month (end of year)
monthly_rate = 0.0115;
for i = 17:24
t(i) = i;
sp(i) = sp(i-1)*(1 + monthly_rate);
  
if(mod(i,3) == 0)
sp(i) = sp(i) * (1 + quarter_rate);
end
end

% from 25th month that is the new year monthly growth rate is 1.25%
monthly_rate = 0.0125;
for i = 25:34
t(i) = i;
sp(i) = sp(i-1)*(1 + monthly_rate);
  
if(mod(i,3) == 0)
sp(i) = sp(i) * (1 + quarter_rate);
end
end

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%in 34th month CEO gets fired and stock price are by $15 and new monthly
%rate is 1.05 percent
sp(34) = sp(34) - 15;
monthly_rate = 0.0105;
for i = 35:60
t(i) = i;
sp(i) = sp(i-1)*(1 + monthly_rate);
  
if(mod(i,3) == 0)
sp(i) = sp(i) * (1 + quarter_rate);
end
end

figure
plot(t,sp)
axis([25,49,50,70])
text(40,52,'Note: Price as of 1st of the month')
xlabel('Months from Jan/2015')
ylabel('Stock Share Price($)')

%Answer 1 month when price dobles as of initial stock price
for i =1:50
  
if(sp(i) >= 2*sp_initial)
fprintf('The Month when the share price doubled is: %d \n', i);
break;
end
  
end