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daser333
2 months ago
5

In april 2011, consolidated edison (ed) stock cost $50 per share and yielded 5% per year in dividends, while national grid (ngg)

stock cost $50 per share and yielded 6% per year in dividends.† if you invested a total of $52,500 in these stocks and earned $2,815 in dividends in a year, how many shares of each stock did you purchase?
Business
1 answer:
soldi70 [3.6K]2 months ago
7 0

Total Investment = 52,500

Given that both stocks are priced at $50, the total number of shares purchased equals 52,500/50 = 1,050 shares

Total share count = 1,050

Let x denote the total number of shares of Ed. Then, the number of Ngg shares equals 1050-x

The dividend return from Ed Stock is calculated as: x*0.05*50

The dividend return from Ngg stock is: (1050-x)*0.06*50

Given that the total returns amounted to 2,815, we can combine and set the two returns equal as follows:

x*0.05*50 + (1050-x)*0.06*50 = 2815

Resulting in: 2.5x + 3150 - 3x = 2815

From which we derive: 0.5x = 335

This leads to x = 335/0.5

Thus, x = 670 shares

This indicates you acquired 670 shares of Consolidated Edison (ED) stock and 380 shares of National Grid (NGG) stock

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