BuyFindarrow_forward

Finite Mathematics and Applied Cal...

7th Edition
Stefan Waner + 1 other
ISBN: 9781337274203

Solutions

Chapter
Section
BuyFindarrow_forward

Finite Mathematics and Applied Cal...

7th Edition
Stefan Waner + 1 other
ISBN: 9781337274203
Textbook Problem

Investing: Lesser-Known Stocks Exercises 19 and 20 are based on the following information about the stocks of Whitestone REIT, HCC Insurance Holdings, Inc, and SanDisk Corporation:18

Price ($) Dividend Yield (%)
WSR (WSR Whitestone REIT) 16 7
HCC (HCC Insurance Holdings, Inc.) 56 2
SNDK (SanDisk Corporation) 80 2

You invested a total of $11,200 in shares of the three stocks at the given prices and expected to earn $304 in annual dividends. If you purchased a total of 250 shares, how many shares of each stock did you purchase?

To determine

To calculate: The shares purchased of all three stocks. The price and the dividend yield is given the following table.

Price ($) Dividend Yield (%)
WSR (WSR Whitestone REIT) 16 7
HCC (HCC Insurance Holding, Inc.) 56 2
SNDK (SanDisk Corporation) 80 2

It is given that the total investment is $11200, and expected earnings are $304. The total number of shares purchased is 250.

Explanation

Given Information:

The price and the dividend yield is given the following table.

Price ($) Dividend Yield (%)
WSR (WSR Whitestone REIT) 16 7
HCC (HCC Insurance Holding, Inc.) 56 2
SNDK (SanDisk Corporation) 80 2

It is given that the total investment is $11200, and expected earnings are $304. The total number of shares purchased is 250.

Formula Used:

Elimination method:

In this method, we first combine the equations in a way such that one of the variables gets eliminated. Then we substitute this obtained value in either of the equation to get the value of the other variable.

Calculation:

Let the stocks purchased of WSR, HCC, and SNDK be x,y,z respectively.

The given statement tell that the total investment is $11200.

Investment in share x is at the price of $16, thus 16x.

Investment in share y is at the price of $56, thus 56y.

Investment in share z is at the price of $80, thus 80z.

Therefore, the total investment can be given by

16x+56y+80z=11200 …… (1)

Also, the given statement tell that the expected earning is $304.

Dividend in share x is at the percentage of 7%, thus dividend can be given by 7% of 16x.

Dividend in share y is at the percentage of 2%, thus dividend can be given by 2% of 56y.

Dividend in share z is at the percentage of 2%, thus dividend can be given by 2% of 80z.

Therefore, the total dividend can be given by:

0.07(16)x+0.02(56)y+0.02(80)z=3041.12x+1.12y+1.6z=304 …… (2)

And total stocks purchased are 250.

Thus,

x+y+z=250 …… (3)

Apply the elimination method to find the solution of the given system of the equations:

Multiply equation (3) with 1.6 to eliminate z.

1.6(x+y+z)=1.6(250)1.6x+1.6y+1.6z=400 …… (4)

Now subtract the second equation from fourth to eliminate z.

1.6x+1.6y+1.6z(1.12x+1.12y+1.6z)=400304(1

Still sussing out bartleby?

Check out a sample textbook solution.

See a sample solution

The Solution to Your Study Problems

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

Get Started
Sect-4.1 P-11ESect-4.1 P-12ESect-4.1 P-13ESect-4.1 P-14ESect-4.1 P-15ESect-4.1 P-16ESect-4.1 P-17ESect-4.1 P-18ESect-4.1 P-19ESect-4.1 P-20ESect-4.1 P-21ESect-4.1 P-22ESect-4.1 P-23ESect-4.1 P-24ESect-4.1 P-25ESect-4.1 P-26ESect-4.1 P-27ESect-4.1 P-28ESect-4.1 P-29ESect-4.1 P-30ESect-4.1 P-31ESect-4.1 P-32ESect-4.1 P-33ESect-4.1 P-34ESect-4.1 P-35ESect-4.1 P-36ESect-4.1 P-37ESect-4.1 P-38ESect-4.1 P-39ESect-4.1 P-40ESect-4.1 P-41ESect-4.1 P-42ESect-4.1 P-43ESect-4.1 P-44ESect-4.1 P-45ESect-4.1 P-46ESect-4.1 P-47ESect-4.1 P-48ESect-4.1 P-49ESect-4.1 P-50ESect-4.1 P-51ESect-4.1 P-52ESect-4.1 P-53ESect-4.1 P-54ESect-4.1 P-55ESect-4.1 P-56ESect-4.1 P-57ESect-4.1 P-58ESect-4.1 P-59ESect-4.1 P-60ESect-4.1 P-61ESect-4.1 P-62ESect-4.1 P-63ESect-4.1 P-64ESect-4.1 P-65ESect-4.1 P-66ESect-4.1 P-67ESect-4.1 P-68ESect-4.1 P-69ESect-4.1 P-70ESect-4.1 P-71ESect-4.1 P-72ESect-4.1 P-73ESect-4.1 P-74ESect-4.1 P-75ESect-4.1 P-76ESect-4.1 P-77ESect-4.1 P-78ESect-4.1 P-79ESect-4.1 P-80ESect-4.1 P-81ESect-4.1 P-82ESect-4.2 P-1ESect-4.2 P-2ESect-4.2 P-3ESect-4.2 P-4ESect-4.2 P-5ESect-4.2 P-6ESect-4.2 P-7ESect-4.2 P-8ESect-4.2 P-9ESect-4.2 P-10ESect-4.2 P-11ESect-4.2 P-12ESect-4.2 P-13ESect-4.2 P-14ESect-4.2 P-15ESect-4.2 P-16ESect-4.2 P-17ESect-4.2 P-18ESect-4.2 P-19ESect-4.2 P-20ESect-4.2 P-21ESect-4.2 P-22ESect-4.2 P-23ESect-4.2 P-24ESect-4.2 P-25ESect-4.2 P-26ESect-4.2 P-27ESect-4.2 P-28ESect-4.2 P-29ESect-4.2 P-30ESect-4.2 P-31ESect-4.2 P-32ESect-4.2 P-33ESect-4.2 P-34ESect-4.2 P-35ESect-4.2 P-36ESect-4.2 P-37ESect-4.2 P-38ESect-4.2 P-39ESect-4.2 P-40ESect-4.2 P-41ESect-4.2 P-42ESect-4.2 P-43ESect-4.2 P-44ESect-4.2 P-45ESect-4.2 P-46ESect-4.2 P-47ESect-4.2 P-48ESect-4.2 P-49ESect-4.2 P-50ESect-4.2 P-51ESect-4.2 P-52ESect-4.2 P-53ESect-4.2 P-54ESect-4.2 P-55ESect-4.2 P-56ESect-4.2 P-57ESect-4.2 P-58ESect-4.2 P-59ESect-4.2 P-60ESect-4.2 P-61ESect-4.2 P-62ESect-4.2 P-63ESect-4.2 P-64ESect-4.2 P-65ESect-4.2 P-66ESect-4.2 P-67ESect-4.2 P-68ESect-4.3 P-1ESect-4.3 P-2ESect-4.3 P-3ESect-4.3 P-4ESect-4.3 P-5ESect-4.3 P-6ESect-4.3 P-7ESect-4.3 P-8ESect-4.3 P-9ESect-4.3 P-10ESect-4.3 P-11ESect-4.3 P-12ESect-4.3 P-13ESect-4.3 P-14ESect-4.3 P-15ESect-4.3 P-16ESect-4.3 P-17ESect-4.3 P-18ESect-4.3 P-19ESect-4.3 P-20ESect-4.3 P-21ESect-4.3 P-22ESect-4.3 P-23ESect-4.3 P-24ESect-4.3 P-25ESect-4.3 P-26ESect-4.3 P-27ESect-4.3 P-28ESect-4.3 P-29ESect-4.3 P-30ESect-4.3 P-31ESect-4.3 P-32ESect-4.3 P-33ESect-4.3 P-34ESect-4.3 P-35ESect-4.3 P-36ESect-4.3 P-37ESect-4.3 P-38ESect-4.3 P-39ESect-4.3 P-40ESect-4.3 P-41ESect-4.3 P-42ESect-4.3 P-43ESect-4.3 P-44ESect-4.3 P-45ESect-4.3 P-46ESect-4.3 P-47ESect-4.3 P-48ESect-4.3 P-49ESect-4.3 P-50ESect-4.3 P-51ESect-4.3 P-52ESect-4.3 P-53ESect-4.3 P-54ESect-4.3 P-55ESect-4.3 P-56ESect-4.3 P-57ESect-4.3 P-58ECh-4 P-1RECh-4 P-2RECh-4 P-3RECh-4 P-4RECh-4 P-5RECh-4 P-6RECh-4 P-7RECh-4 P-8RECh-4 P-9RECh-4 P-10RECh-4 P-11RECh-4 P-12RECh-4 P-13RECh-4 P-14RECh-4 P-15RECh-4 P-16RECh-4 P-17RECh-4 P-18RECh-4 P-19RECh-4 P-20RECh-4 P-21RECh-4 P-22RECh-4 P-23RECh-4 P-24RECh-4 P-25RECh-4 P-26RECh-4 P-27RECh-4 P-28RECh-4 P-29RECh-4 P-30RECh-4 P-31RECh-4 P-32RECh-4 P-33RECh-4 P-34RECh-4 P-35RECh-4 P-36RECh-4 P-37RECh-4 P-38RECh-4 P-39RECh-4 P-40RECh-4 P-41RECh-4 P-42RECh-4 P-43RECh-4 P-44RECh-4 P-45RECh-4 P-46RE

Additional Math Solutions

Find more solutions based on key concepts

Show solutions add

Express the function in the form f g h. 49. R(x)=x1

Single Variable Calculus: Early Transcendentals, Volume I

In Exercises 16, find the points of intersection of the graphs of the functions. Express your answer accurate t...

Applied Calculus for the Managerial, Life, and Social Sciences: A Brief Approach

Simplify each radical expression. 1(513)2

Trigonometry (MindTap Course List)

True or False: The graph at the right is the graph of a function.

Study Guide for Stewart's Single Variable Calculus: Early Transcendentals, 8th