In June an investor purchased 300 shares of Oracle (an

Chapter 3, Problem 13E

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QUESTION:

In June an investor purchased 300 shares of Oracle (an information technology company) stock at $20 per share. In August she purchased an additional 400 shares at $25 per share. In November she purchased an additional 400 shares, but the stock declined to $23 per share. What is the weighted mean price per share?

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QUESTION:

In June an investor purchased 300 shares of Oracle (an information technology company) stock at $20 per share. In August she purchased an additional 400 shares at $25 per share. In November she purchased an additional 400 shares, but the stock declined to $23 per share. What is the weighted mean price per share?

ANSWER:

Step 1 of 3

The number of shares purchased by investor in June = 300.

Stock price per share = $20.

Similarly, The number of shares purchased by investor in August = 400.

Stock price per share = $25.

The number of shares purchased by investor in August = 400.

Stock price per share = $23.

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