Answer:
3. 504,875 shares
4. $10,829,568.75
5. $30,383,377.5
Explanation:
1. For the first one, you just need to find 70% of 721,250, which we can do several ways:
If Allen owns 70% of Bull Corp, he owns 0.7 x 721,250 = 504,875 shares.
Therefore, Allen owns 504,875 shares of Bull Corp.
you can use cross-multiplication to solve this problem as well. Here's how:
Let X be the number of shares that Allen owns.
According to the problem, Allen owns 70% of the total number of shares, which is 721,250.
So we can write:
X/721,250 = 70/100
To solve for X, we can cross-multiply:
100X = 70 * 721,250
Simplifying the right-hand side:
100X = 50,487,500
Dividing both sides by 100:
X = 504,875
Therefore, Allen owns 504,875 shares of Bull Corp, which is the same answer we got earlier.
I added a picture below.
2. If Allen paid $21.45 PER share we just multiply that by he amount of shares, which is 504,875:
If Allen owns 504,875 shares of Bull Corp, and he paid $21.45 per share, his initial total investment would be:
Total investment = Number of shares * Price per share
Total investment = 504,875 * $21.45
Total investment = $10,829,568.75
Therefore, Allen's initial total investment was $10,830,093.75.
i added a picture for this too.
3. Just replace the 21.45 with 60.18:
If the shares are now worth $60.18, the total value of Allen's shares would be:
Total value = Number of shares * Current price per share
Total value = 504,875 * $60.18
Total value = $30,383,377.5
Therefore, the total value of Allen's shares now is $30,382,078.50.
Added a picture.