In April, Sandi sold 1,600 shares of Federal Express at $105.00 per share. In May, the stock reached a low during the Great Recession and was selling for $32.00 per share. Sandi used the proceeds from the sale and repurchased Federal Express at $32.00 per share in May. What is the value of Sandi's stock holdings in Federal Express if the shares are selling for $91.00 today?

Question

Quizplus · Accepted Answer

First, we need to calculate the amount of money Sandi earned from selling 1,600 shares at $105.00 per share:

$105.00 x 1,600 = $168,000

Then, we need to calculate how many shares she could buy at the low of $32.00 per share with that money:

$168,000 ÷ $32.00 = 5,250 shares

Now, we need to calculate the current value of those 5,250 shares at $91.00 per share:

$91.00 x 5,250 = $477,750

Therefore, the value of Sandi's stock holdings in Federal Express is $477,750.

In April, Sandi Sold 1,600 Shares of Federal Express at $105.00