An investor purchased 20 shares of certain stock at price of $45.75 per share. Later this investor purchased 30 more shares at price of $46.25 per share. What was the average price per share that this investor paid for the 50 shares?
1. 45.80
2. 45.95
3. 46.00
4. 46.05
5. 46.20
Anwer is 4
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dmateer25
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First Purchase: 20 * 45.75 = 915
Second Purchase: 30 * 46.25 = 1387.50
Total Purchase Price: 915 + 1387.50 = 2302.5
Average Purchase Price/Share: 2302.50/50 = 46.05
Second Purchase: 30 * 46.25 = 1387.50
Total Purchase Price: 915 + 1387.50 = 2302.5
Average Purchase Price/Share: 2302.50/50 = 46.05
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Scott@TargetTestPrep
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Solution:ST wrote: ↑Fri May 15, 2009 6:14 amAn investor purchased 20 shares of certain stock at price of $45.75 per share. Later this investor purchased 30 more shares at price of $46.25 per share. What was the average price per share that this investor paid for the 50 shares?
1. 45.80
2. 45.95
3. 46.00
4. 46.05
5. 46.20
Answer is 4
The average price per share of the stock was:
(20 x 45.75 + 30 x 46.25) / 50
(915 + 1387.5) / 50
2302.5/50 = $46.05
Answer: 4 or D
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