Question

An investor purchased shares of Ace Company as follows: 500 shares @ $10 per share, 10,000 shares @ $6.00 per share,
and 1,000 shares at $4.00 per share. What is the investor's average cost per share?
a $6.00
b $7.00
c $6.67
d $23,000​

Answer 1

Answer:

Option (a) - $6.00

Step-by-step explanation:

Expenditure on shares :-

${(500*10)+(10000*6)+(1000*4)}

= ${5000+60000+4000}

= $ 69000.

Total shares :-

500+10000+1000

= 11500.

Average cost per share :-

$(69000/11500)

= $ 6.00 .