Asked by Bernadine Franklin on May 31, 2024
Verified
The current price of Acme stock is $5.80. The stock is down 90% from its price one year ago. What was the stock price one year ago?
A) $11.02
B) $6.44
C) $6.38
D) $65.00
E) $58.00
Stock Price
The current market price at which a share of a company's stock can be bought or sold.
- Utilize the principles of trade discounts to compute the future or previous values.
Verified Answer
ZK
Zybrea KnightJun 05, 2024
Final Answer :
E
Explanation :
If the stock is down 90% from its price a year ago, it means it is now at 10% of its value from a year ago. Therefore, to find the original price, divide the current price by 0.10. $5.80 / 0.10 = $58.00.
Learning Objectives
- Utilize the principles of trade discounts to compute the future or previous values.