Question

8. Mitchell bought 600 shares of Centerco two years ago $34.50 per share. He sold them yesterday for $38.64 per share.

a. What was the percent increase in the price per share?
b. What was the total purchase price for the 600 shares?
C. What was the total selling price for the 600 shares?
d. What was the profit for the 600 shares?
D. What was the profit for the 600 shares?

Answer 1

a. percentage increase in price per share = 12%

b. The total purchase price for the 600 shares is $20,700

c. The profit for the 600 shares is $2,484

d. The profit for the 600 shares is $2,484

Explanation:

a. Initial price per share = $34.50

Current price per share = $38.64

Change or increase in price = $38.64 - $34.50 = $4.14

percentage increase in price per share = 12/34.50 x 100% = 12%

b. Total number of shares = 600

Price = $34.50

The total purchase price for the 600 shares = ($34.5x600) = $20,700

c. Total cost of 600 shares = ($34.5x600) = $20,700

Total revenue from sales = ($38.64x600) = $23,184

Profit from the 600 shares = Total selling price - total cost price

= $23,184 - $20,700 = $2,484

d. Total cost of 600 shares = ($34.5x600) = $20,700

Total revenue from sales = ($38.64x600) = $23,184

Profit from the 600 shares = Total selling price - total cost price

= $23,184 - $20,700 = $2,484