# 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:

Answer: Option

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.

Adheer said:
3 years ago

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.

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.

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?

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.

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.

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.

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.

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