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Over the past 2 years, Jonas Cone has used a? dollar-cost averaging formula to purchase $325 worth of FCI common stock each month. The price per share paid each month over the 2 years is given in the following table. Assume that Jonas paid no brokerage commissions on these transactions.

Price per Share of FC

Month Year 1 Year 2

January $11.98 $11.79

February 11.98 12.19

March 11.67 11.93

April 11.16 11.67

May 12.21 11.62

June 12.41 12.94

July 12.83 12.58

August 12.88 12.97

September 12.21 13.62

October 12.78 13.38

November 12.15 13.98

December 11.23 13.76

a. How much was Jonas's total investment over the 2-year period?

b. How many shares did Jonas purchase over the 2-year period?

c. Use your findings in parts a and b to calculate Jonas's average cost per share of FCI.

d. What was the value of? Jonas's holdings in FCI at the end of the second year?

Reference no: EM132016015

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