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29 Jul 2025, 08:28
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You can solve by weighted average concept but you need to be sure what weights and price you should use.
First 9 month:
total shares (Lets call then Share A) - 5M
Gains - 7.2
Last 3 month:
Total shares - 10M (5M old [A] and 5M new [lets call them Share B])
Gains - 1.25
We need to calculate avg gains per share.
Total gains by Share A - 7.2+1.25 = 8.25 [Gains A]
Total gains by Share B - 1.25 [Gains A]
weighted average - (Share A * Gains A + Share B * Gains B) / (Share A + Share B)
(8.25*5M + 1.25*5M) / (5M+5M) = 4.85
First 9 month:
total shares (Lets call then Share A) - 5M
Gains - 7.2
Last 3 month:
Total shares - 10M (5M old [A] and 5M new [lets call them Share B])
Gains - 1.25
We need to calculate avg gains per share.
Total gains by Share A - 7.2+1.25 = 8.25 [Gains A]
Total gains by Share B - 1.25 [Gains A]
weighted average - (Share A * Gains A + Share B * Gains B) / (Share A + Share B)
(8.25*5M + 1.25*5M) / (5M+5M) = 4.85
kanwar08
