Aptitude - Stocks and Shares - Discussion

Discussion Forum : Stocks and Shares - General Questions (Q.No. 6)
6.
A 6% stock yields 8%. The market value of the stock is:
Rs. 48
Rs. 75
Rs. 96
Rs. 133.33
Explanation:

For an income of Rs. 8, investment = Rs. 100.

 For an income of Rs. 6, investment = Rs. 100 x 6 = Rs. 75. 8

Market value of Rs. 100 stock = Rs. 75.

Discussion:
22 comments Page 1 of 3.

Rekha .B said:   3 years ago
Let the investment amount be Rs 100, and yeild be 8% and interest be 6%. Therefore, formula is: asummed amt Ã· yeild amt * interest amt : 100/0.8 * 0.6 = 75.

The dividend yield or dividend-price ratio of a share is the dividend per share, divided by the price per share;

Dividend yield = Dividend per share / Price per share.
8 = 6 / Price per share.
Price per share = 6/8 = 0.75.
If Face value of share Rs. 100 then market value of share = Rs. 75.

Sergi said:   4 years ago
The stock he bought which was 6% of face value now worth 8% of the market value.

Let x be the market value,
we don't know face value so consider 100.
6% of 100 = 8% of x.
(6/100)*100 =(8/100)*x.
6=8x/100.
x=600/8.
x=75.
(3)

Ronaldo said:   5 years ago
What does stock mean?

How to calculate it?

Prabha said:   5 years ago
133.33 is the correct answer because market value should higher than the actual value, therefore, we should take for 6% we take Rs 100 as income finally it results in market value as 133.33.

Arvind vishnoi said:   6 years ago
Given, income Rs.6 on investment of 100 and interest is 8%, find out the market value.
As we know that interest is on market value so,6 = (market value * 8 * 1)/100.
So, the Market value = 75.

Shena said:   6 years ago
I think 133.33 is the correct answer.
(1)

Amar said:   6 years ago
Why are we assuming FV = 100, in all these questions? Can somebody explain me the logic behind it?

Because if we are saying 6% stock it means, we will get Rs 6 as a dividend only when FV is 100.
(1)

Mr MP said:   7 years ago
6% at ---- . ---- here is the market value .. go through the important formulas once.
6% at a particular market value yields 8%.(market value we should find)
we assume face value as 100 so 8rs income we get from 100 investment, so for 6rs income how much investment 6*100/8= 75rs this investment is the market value.

Harsha said:   7 years ago
Yes, I too think 133.33 is the right answer.