Question

In june, an investor purchased 350 shares of oracle (an information technology company) stock at $20 per share. in august, she purchased an additional 420 shares at $24 per share. in november, she purchased an additional 470 shares at $33 per share. what is the weighted mean price per share

Answer 1

In June, number of shares = 350; Stock Price = $20 Total Oracle share price in June = 350 x 20 = 7000 In August, additional number of shares = 420; Stock price = $24 Total Oracle share price in June = 420 x 24 = 10080 In November, additional number of shares = 470; Stock price = $33 Total Oracle share price in June = 470 x 33= 15510 Final total share price = 7000 + 10080 + 15510 = 32590 Final number of shares = 350 + 420 + 470 = 1240 Mean price per share = Final total share price / Final number of shares = 32590 / 1240 = $26.28