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_________
