If an investor purchased 50 shares of Pearson Education stock at $85 per share, 90 shares at $105 per share, 120 shares at $110 per share and another 75 shares at $130 per share. What is the mean cost per share?
A) $110.25
B) $109.40
C) $130.50
D) $105.50

Question

Quizplus · Accepted Answer

To find the mean cost per share, calculate the total cost of all shares and divide by the total number of shares. The total cost is (50*$85) + (90*$105) + (120*$110) + (75*$130) = $42,500 + $9,450 + $13,200 + $9,750 = $74,900. The total number of shares is 50 + 90 + 120 + 75 = 335. The mean cost per share is $74,900 / 335 = $223.58 (total cost) / 335 (total shares) = $109.40 per share.

If an Investor Purchased 50 Shares of Pearson Education Stock