I cannot wrap my head around the formula to use for a dollar cost average calculation. Normal calculations are
Average price per share = total sum invested / total shares
in the scenario I'm looking at someone has bought for 150$ shares against the rate of 2$ each.
The current rate per share is 0.37$ and he wants to bring down his average price per share down to 0.4$
The way I was writing out the formula was:
0.4 = (150+x)/( 300+y)
First of all is this a correct understanding and secondly how to find values for X and Y?
Average price per share = total sum invested / total shares
in the scenario I'm looking at someone has bought for 150$ shares against the rate of 2$ each.
The current rate per share is 0.37$ and he wants to bring down his average price per share down to 0.4$
The way I was writing out the formula was:
0.4 = (150+x)/( 300+y)
First of all is this a correct understanding and secondly how to find values for X and Y?
