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Difficulty:
55%
(hard)
Question Stats:
69% (02:39) correct
31%
(02:34)
wrong
based on 51
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At the end of the first day of trading, the price of Freshgreen shares was 108 dollars, 350% higher than the initial public offering (IPO) price. If the price of Freshgreen shares has fallen by 20% since the end of trading yesterday and is now 10% lower than the IPO price, what was the price of the shares at the end of trading yesterday?
A) $21.60
B) $24.00
C) $25.92
D) $27.00
E) $30.00
A) $21.60
B) $24.00
C) $25.92
D) $27.00
E) $30.00
03 Apr 2026, 18:43
Kudos
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Got it! Let’s solve it with IPO price = 108.
End of first day price = 350% higher than IPO → 108 + 3.5 × 108 = 108 × 4.5 = 486
Let yesterday’s price = y
After a 20% fall, price = 0.8 × y
This is now 10% lower than IPO → 108 − 10% of 108 = 108 × 0.9 = 97.2
So, 0.8 × y = 97.2 → y = 97.2 / 0.8 = 121.5
The price at the end of trading yesterday was 121.5.
kevincan Can you please check the option.
End of first day price = 350% higher than IPO → 108 + 3.5 × 108 = 108 × 4.5 = 486
Let yesterday’s price = y
After a 20% fall, price = 0.8 × y
This is now 10% lower than IPO → 108 − 10% of 108 = 108 × 0.9 = 97.2
So, 0.8 × y = 97.2 → y = 97.2 / 0.8 = 121.5
The price at the end of trading yesterday was 121.5.
kevincan Can you please check the option.
03 Apr 2026, 22:00
Kudos
Bookmarks
You made a mistake at the start.
The price of 108 = 350% more THAN the IPO.
It means 108 = 4.5x
x = 24.
Now the new price that we have landed at says it is 20% lower than IPO
= 0.8(24) = 21.6
This 21.6 = 0.8y [20% reduction over yesterday's trading which is what is asked]
Solving for y:
y = 21.6/0.8 = 21.6*5/4 = 27.
Answer: Option D
Hope it helps.
The price of 108 = 350% more THAN the IPO.
It means 108 = 4.5x
x = 24.
Now the new price that we have landed at says it is 20% lower than IPO
= 0.8(24) = 21.6
This 21.6 = 0.8y [20% reduction over yesterday's trading which is what is asked]
Solving for y:
y = 21.6/0.8 = 21.6*5/4 = 27.
Answer: Option D
Hope it helps.
ankushsambare
