I vaguely seem to recall rampaging up saying that he had purchased 5000 shares of GNET in the low $80s today. Let us say he meant $82. Someone else said he/she once bought GNET shares at an average of $8. In turn, rampaging up retorted that his average price for all his GNET shares was less than that other person's average price. Here I become confused. Can you help me with the arithmetic?
Hi folks,
I couldn't pass up sinking my teeth into this little math question. I call to my aid algebra:
To calculate basis: (total cost)/(total shares) == basis
To calculate total cost: (5,000*(recent purchase price -- I used 80) + (X*(estimated previous basis)) where X is number of old shares.
total shares is 5,000 + X
plugging in the numbers if the old estimated basis is 5, he has 125,000 shares to have a basis of 8. This is a total investment in GNET of $10,000,000. With an old basis of 3 he has 77,000 shares. Now, if his new basis is less than 8, let's say 6, and his original basis was 5, then he has 375,000 shares. With 370,000 shares, 5,000 is a drop in the bucket. One rich dude!
Still long.
#10
Dr.Zax |
