Final answer:
a. Marty's total investment in Harley-Davidson is $684,000. b. After four years, Marty owns 16,000 shares. c. The average cost per share of Marty's investment is approximately $42.75.
Step-by-step explanation:
a. To calculate Marty's total investment in Harley-Davidson, we need to multiply the amount invested each year by the stock price for that year and then sum the results.
In 2017, Marty invested $4,000, so the total investment for that year would be $4,000 x $55 = $220,000.
Similarly, the total investments for the other years can be calculated as $4,000 x $47 = $188,000 in 2018,
$4,000 x $36 = $144,000 in 2019, and $4,000 x $33 = $132,000 in 2020.
Adding all these amounts together, we get a total investment of $684,000.
b. To calculate the number of shares Marty owns, we need to divide the total investment by the stock price for each year. For 2017, $220,000 / $55 = 4,000 shares.
For 2018, $188,000 / $47 = 4,000 shares.
For 2019, $144,000 / $36 = 4,000 shares.
For 2020, $132,000 / $33 = 4,000 shares.
So, after four years, Marty owns a total of 4,000 + 4,000 + 4,000 + 4,000 = 16,000 shares.
c. To calculate the average cost per share, we need to divide the total investment by the number of shares.
In this case, the total investment is $684,000 and the number of shares is 16,000.
So, the average cost per share is $684,000 / 16,000 = $42.75 (rounded to 2 decimal places).