An investor bought common stock of Blackstone Company on several occasions at the following prices The following frequency distribution represents the number of shares and its price per share.
Number of Shares Price per Share
100
200
400
$34
$30
$28
The average price per share at which the investor bought these shares of common stock was the closest to
$28.00
531.00
$29.43
$30.67
To find the average price per share, you need to calculate the weighted mean.
Weighted Mean = (Sum of (Number of Shares * Price per Share)) / (Sum of Number of Shares)
In this case, the sum of (Number of Shares * Price per Share) can be calculated as follows:
(100 * $34) + (200 * $30) + (400 * $28) = $3400 + $6000 + $11200 = $20600
The sum of Number of Shares is 100 + 200 + 400 = 700
Now, divide the sum of (Number of Shares * Price per Share) by the sum of Number of Shares:
Average Price per Share = $20600 / 700 = $29.43
Therefore, the closest average price per share at which the investor bought these shares of common stock is $29.43.