Ninety shares of Mattel stock have been purchased for $15 per share. How many shares of FedEx at $60 per share are needed to raise the average price of all shares to $50 per share? Round your answer to the nearest share if necessary.

Question

Quizplus · Accepted Answer

The total cost of the 90 shares of Mattel stock is 90 * $15 = $1350. To raise the average price of all shares to $50, let x be the number of FedEx shares needed. The total cost of the FedEx shares is x * $60. The average price of all shares, including the new FedEx shares, would be ($1350 + $60x) / (90 + x) = $50. Solving this equation for x gives x = 315.

Ninety Shares of Mattel Stock Have Been Purchased for $15