OPMT 1197 Quiz 1
Mark: /12
Last Name: ____________________First Name:______________________ Set:_______
In September 2018, TD Bank issued the new “Series 20” preferred shares. In September, you bought 100 shares for $25 per share, in November you bought 80 more shares for $24 per share and in December bought another 220 shares for $21 per share.
(a) Calculate the average price you paid per share. [3 marks]
|
Month |
No. Of Share |
Amount Per Share |
Total Amount Invested |
|
September |
100 |
$25 |
$2500 |
|
November |
80 |
$24 |
$1920 |
|
December |
220 |
$21 |
$4620 |
|
Total |
|
|
|
ANSWER: ____22.6$/Share_________________
(b) The price of TD shares recently fell to $20/share so you are considering buying more shares. How many more shares would you need to buy to reduce the overall average price paid to $21.25/share? [5 marks]
|
Month |
No. Of Share (w) |
Amount Per Share(x) |
Total Amount Invested(wx) |
|
September |
100 |
$25 |
$2500 |
|
November |
80 |
$24 |
$1920 |
|
December |
220 |
$21 |
$4620 |
|
More shares |
w |
$20 |
$20w |
|
Total |
|
|
|
ANSWER: _______432shares___________
(c) You did not buy any more shares because you thought the share price might fall even further. However, a few weeks later, you bought another 500 shares which reduced the overall average price paid to $20.75. What price per share did you pay for the 500 shares? [4 marks]
|
Month |
No. Of Share (w) |
Amount Per Share(x) |
Total Amount Invested(wx) |
|
September |
100 |
$25 |
$2500 |
|
November |
80 |
$24 |
$1920 |
|
December |
220 |
$21 |
$4620 |
|
More shares |
432 |
$20 |
$8640 |
|
Four week later |
500 |
x |
500x |
|
Total |
|
|
|
ANSWER: ______19.918$/share_________