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To expand her portfolio, Piper recently purchased 400 shares of common stock in the Rail Car Manufacturing Company, a manufacturing firm in Nevada. The current market price of RCM’s common stock is $19.45 per share. Piper’s total wealth from her investment in Rail Car Manufacturing Company is ___.

User Robert Mao
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Answer:

=$7,780

Step-by-step explanation:

Calculating Piper's total wealth from her investment

Piper purchase of Common Stock = 400 Shares

The market price of Rail Car Manufacturing Company= $19.45

The total wealth from her investment

= 400 shares x $19.45

=$7,780

The wealth from investment is usually calculated as the value of the shares bought in the company based on the current market price of that shares at the time they were bought.

User MatthewScarpino
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