Question

suppose that you bought 500 shares of Pinewood Dairy Corporation for $39 per share several months ago. Yesterday you sold 200 of the shares at a current price of $45 per share. How much money did you gain or lose on the shares that you sold? what was the gain of loss per share? Based on the price of $45 per share, what was the market value of ypur remaining shares yesterday?​

Answer 1

Explanation:

we bought 500 shares per $39.

so, we had to pay

500×39 = $19500

yesterday we sold 200 of the 500 shares per $45.

since the price was higher than the original buying price, we gained.

we gained 200 shares times the difference in shares price.

200×(45-39) = 200×6 = $1200

we gained $1200 in total.

we gained 45-39 = $6 per share.

we have 500-200 = 300 shares left.

the current market value of these shares is

300×45 = $13500