Question

Computer Science

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)


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