Joshua originalle bought two hundred shares of stock three years ago. The company has since had a 2 for 1 stock split. Joshua's entire investment in stock has increased in value by 20%. He originally paid $8,600 for the stock. What is the current price per share of?
The initial price was 8600 for 200 shared. A 20% increase in value is
8,600+(8,600*0.20) = $10,320. And that value is for 400 shares. Price per share is
10,320/400 =??
To find the current price per share, divide the total value of Joshua's investment by the number of shares after the stock split.
We know that the total value of Joshua's investment is $10,320, and after the 2 for 1 stock split, he now has 400 shares. To calculate the current price per share, divide the total value by the number of shares:
Current price per share = Total value / Number of shares
Current price per share = $10,320 / 400 = $25.80
Therefore, the current price per share is $25.80.