Martha Stewart went to prison for selling nearly 4000 shares of ImClone Systems stock because she had inside information that the company was about to announce bad news that would result in the stock’s value plummeting. Surprisingly, the value of a share of Martha Stewart Living Omnimedia stock increased by about $3.36 per month after she was sentenced. The value of a share of her stock was $8.16 just before she was sentenced. Let v be the value (in dollars) of a share of the stock at t months since Stewart was sentenced.
a. Find an equation of a model to describe the situation.
b. Estimate the value of a share of the stock 3 months after the sentencing, which is about when Stewart reported to prison.
c. Estimate when the value of a share of the stock reached $28.32.