From the information given, the shares are overpriced by 25%, therefore the shares stand at 125%
We need to find out the price value of 1% share.
125% = 300$
1% = x (where x is the value in dollars of 1% shares)
Simplify the above equation by cross multiplying , so:
125 × x = 300 ×1
125 x = 300
x = 300/125
x= 2.4 $
1% share price is 2.4 dollars. How about the true share price? The true share price is at 100%
100% share price value is 2.4 × 100 = 240
Therefore the true and fair price of the shares is $ 240
