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30 March, 13:37

Krit corporaton is a US manufacturing company based in the Midwest. As an investor, Wilson bought 225 shares of stock in Krit Corp. The stock price of Krit is currently trading at $45 per share. Wilson's total wealth in Krit Corp is? If the stock price of Krit Corp increases in the next 2 years, Wilson's wealth in in Krit Corp will (increase or decrease) ?

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  1. 30 March, 15:31
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    The correct answer is $10,125 and increase in wealth.

    Explanation:

    According to the scenario, the given data are as follows:

    Total shares bought = 225 shares

    Current stock price = $45

    So, we can calculate Wilson's total wealth in Krit Corp. by using following method:

    Total wealth = Total shares bought * Current stock price

    = 225 * $45

    = $10,125

    Hence, the total wealth of Wilson is $10,125.

    Wilson wealth will increase because if the company stock price increase Wilson's stock price also increase, which results in increase of wealth.
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