Answered

Welcome to Westonci.ca, the place where your questions find answers from a community of knowledgeable experts. Discover detailed answers to your questions from a wide network of experts on our comprehensive Q&A platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.

You purchase $300 worth of the same stock every quarter for one year at prices per share of $15, $12, $10, and $20, respectively. By using this dollar-cost averaging strategy, you paid less overall than the average share price of $14.25. What was the average cost per share that you paid?
please help​

Sagot :

Answer:

$13.33

Explanation:

chilljain33

The average cost of purchase for each stock throughout the year will be $13.33 per share.

What is the average cost?

Average cost refers to total cost incurred divided by the total quantity purchased for such product. Using the given information, the average cost per share can be calculated as,

Total Cost will be $1200, as $300 worth of shares were purchased in each quarter. And the total quantity accumulated throughout this period was 90 shares.

So, the average cost per share will be,

[tex]\rm Average\ Cost\ = \dfrac{Total\ Cost}{Total\ Quantity}\\\\\rm Average\ Cost\ = \dfrac{1200}{90\\}\\\rm Average\ Cost\ =\$13.33[/tex]

Hence, the average cost per share will be $13.33 for shares purchased throughout the year.

Learn more about average cost here:

https://brainly.com/question/13950634

#SPJ2

Thank you for your visit. We're committed to providing you with the best information available. Return anytime for more. Your visit means a lot to us. Don't hesitate to return for more reliable answers to any questions you may have. We're dedicated to helping you find the answers you need at Westonci.ca. Don't hesitate to return for more.