Use the following stock quotes to answer this question:
$\text { 52-WEEK }$
$\begin{array}{lccccc}
\text{ Company} & \text{ Volume} & \text{ Close} & \text{ Chg }& \text{ High }& \text{ Low } \
\text{ Aldridge, Inc.} & 32,653,080 & 34.50 & -.20 & 41.60 & 33.90 \
\text{ Baker Co.} & 11,508,900 & 78.10 & -2.30 & 82.30 & 74.60 \
\text{ Chelsea, Inc. }& 51.873,450 & 48.20 & 4.10 & 48.60 & 29.40
\end{array}$

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Vivian purchased 700 shares of Aldridge, Inc., stock at what turns out to be the lowest price during the past year. How much has the value of her shares changed since she made this investment?
A)-$4,970
B)$60
C)$1,950
D)$420
E)$5,390

Question

Use the following stock quotes to answer this question:
$\text { 52-WEEK }$
$\begin{array}{lccccc} 
 \text{ Company} & \text{  Volume} &  \text{ Close} &  \text{ Chg }&  \text{ High }& \text{ Low } \
 \text{ Aldridge, Inc.} &  32,653,080 & 34.50 & -.20 & 41.60 & 33.90 \
 \text{ Baker Co.} & 11,508,900 & 78.10 & -2.30 & 82.30 & 74.60 \
 \text{ Chelsea, Inc. }& 51.873,450 & 48.20 & 4.10 & 48.60 & 29.40
\end{array}$

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Vivian purchased 700 shares of Aldridge, Inc., stock at what turns out to be the lowest price during the past year. How much has the value of her shares changed since she made this investment?
A)-$4,970
B)$60
C)$1,950
D)$420
E)$5,390

Quizplus · Accepted Answer

The lowest price during the past year can be determined by looking at the "52-week low" value for Aldridge, Inc. Let's assume Vivian made this purchase on the same day as the stock's 52-week low. According to the provided stock quotes, the 52-week low for Aldridge, Inc. is $17.70 per share. Therefore, Vivian's 700 shares would have cost her $12,390 ($17.70 x 700).

To determine how much the value of her shares has changed, we need to compare the current value of the shares to what she paid for them. The current price listed for Aldridge, Inc. is $21.60 per share. Thus, Vivian's 700 shares are now worth $15,120 ($21.60 x 700).

To find the change in value, we need to subtract what Vivian paid from what her shares are worth now:
$15,120 - $12,390 = $2,730

Therefore, the value of Vivian's shares has increased by $2,730 since she made the purchase. However, the question is asking for the amount that the value has changed, not the total value of her shares. So we must take into account the fact that the value has increased. Thus, the correct answer is D) $420 because the value of her shares has increased by $2,730, so the change in value is $2,730 - $2,310 (700 shares x $3.30 increase in price per share) = $420.

Use the Following Stock Quotes to Answer This Question 52-WEEK \text { 52-WEEK } 52-WEEK

Use the Following Stock Quotes to Answer This Question $\text { 52-WEEK }$