Question

Miguel paid a total of $12,000 for stock that was $8 per share. If he sold all his shares for $15,000, how much profit on each share did he make?
a.
$2
b.
$8
c.
$10
d.
$12

Answer 1

Answer:

Option A.

Step-by-step explanation:

Miguel paid the total amount to purchase the shares = $12000

Cost of one share = $8

So, number of shares purchased = $\frac{\text{Total amount paid}}{\text{Price of one share}}$

= $\frac{12000}{8}$

= 1500

Selling price of 1500 shares = $15000

Since profit = Selling price - Cost price

So, net profit = $15000 - $12000

                     = $3000

Profit per share = $\frac{\text{Total profit}}{\text{Number of shares sold}}$

= $\frac{3000}{1500}$

= $2

Therefore, Option A. will be the answer.

Answer 2

The answer for this question is a) 2$

He bought 1500 shares (12000/8)
and sold all of them for 15000 which means that he sold each share for 10$ (15000/1500)
So he got got a profit of 2$ (10$-8$)