Question

Chadwick bought 50 shares of Chipotle stock on Nov 1, 2016 for $396.33 share. He sold the shares four years later, with the per closing price for that day of $778.38. A) What did Chadwick pay for all of the shares in 2016? B) What was the closing value of all of the shares four years later? C) How much money did he gain / l * o * s with this stock? D) What is his rate of return on his shares when he sold them?

Answer 1

Answer:

Step-by-step explanation:

Given the following :

Number of shares purchased (2016) = 50

Purchase price of shares $396.33 per share

Closing price per share four years later = $778.38

A) What did Chadwick pay for all of the shares in 2016?

Purchase price per share × number of shares.

$396.33 × 50 = $19,816.50

B) What was the closing value of all of the shares four years later?

Closing price per share × number of ahaf

=$778.38 × 50

= $38,919

C.) Profit on stock :

$(38,919 - 19,816.50)

= $19,102.5

D) What is his rate of return on his shares when he sold them?

(Current Purchase - initial value) /current price

(778.3 - 396.33) / 396.33

= (381.97 / 396.33) 100%

= 0.9637675

=