Question

After some bad news (due to a revolutionary but ultimately doomed process for making toast in a microwave oven), stock in Seraj Food Industries fell by 40%, to $324 a share. What was the original price of a share?

Answer 1

$540 is the original price of the share.

Explanation:

Original price = ​final price ÷ (1 - percentage (in decimal form))

Original price = $324 ÷ (1 - 0.40)

Original price = $324 ÷ 0.6

Original price = $540