Question

In June, an investor purchased 200 shares of Oracle (an information technology company) stock at $37 per share. In August, she purchased an additional 270 shares at $36 per share. In November, she purchased an additional 490 shares at $41 per share. What is the weighted mean price per share

Answer 1

Answer:

Average price of share = $38.76 (Approx.)

Explanation:

Given:

Shares investor purchase = 200 shares

Share price = $37

Additional share = 270 at $36

Additional share = 490 at $41

Find:

Weighted mean price per share

Computation:

Average price of share = Total price / Total number of shares

Average price of share = [(200)(37) + (270)(36) + (490)(41)] / [200 + 270 + 490]

Average price of share = [(7,400) + (9,720) + (20,090)] / [960]

Average price of share = $38.76 (Approx.)

Answer 2

Answer:

the  weighted mean price per share is $38.76

Explanation:

The computation of the weighted mean price per share is given below:

= (200 shares × $37 per share + 270 shares × $36 per share + 490 shares × $41 per share) ÷ (200 shares + 270 shares + 490 shares)

= ($7,400 + $9,720 + $20,090) ÷ (960 shares)

= $37,210 ÷ 960 shares

= $38.76

Hence, the  weighted mean price per share is $38.76