Question

Mason purchased Texas Instruments for $45.23 per share and plans to sell the shares when the stock price rises 25%. If Texas Instruments is currently selling for $52.00, what percent increase above the current does Mason need to issue the sell order?

Answer 1

8.726%

Explanation:

Purchase price = $45.23

Current selling price of stock = $52.00

Intended increase before sale = 25%

25% of purchase price :

100% + 25% = 125%

125% of $45.23

1.25 × 45.23 = $56.5375

$56.5375 is the price at which Mason intends to sell the stock after purchase.

If current price = $52.00;

What percentage increase above the current price is $56.5375.

Let the percentage increase = p

Therefore,

p% of $52 = $56.5375

(p/100) * 52 = 56.5375

52p/100 = 56.5375

52p = 5653.75

p = 5653.75 / 52

P = 108.72596

Therefore p = 108.72596% - 100%

The percentage increase above the current price is thus :

8.72596%

= 8.726%