Aptitude - Stocks and Shares - Discussion

Discussion :: Stocks and Shares - General Questions (Q.No.6)

6. 

A 6% stock yields 8%. The market value of the stock is:

[A]. Rs. 48
[B]. Rs. 75
[C]. Rs. 96
[D]. Rs. 133.33

Answer: Option B

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.


Vvsdgdttr said: (Sep 16, 2011)  
From where did 100 came?

M.V.Krishna/Palvoncha said: (Jan 12, 2012)  
Here we are comparing on percentages so 100% is taken as 100 rupees for easy calculation.

Manali said: (Aug 19, 2012)  
From where we get 100?

Ajay said: (Aug 29, 2012)  
Dividend D=6, Interest I =8.
We have Divident Amount =I*market value=D*face value
which implies 8m=6f
->m/f=0.75
Taking 100 rs as reference we get 75 Rs.

Dilip said: (Dec 3, 2012)  
What is the correct meaning of question?

Sikkanthar said: (Aug 28, 2013)  
The investment is lead from 6% into 8% in this stage they are asking the market rate.

Jawahar said: (Jun 20, 2015)  
When the face value is not given then we assume 100 for our convince. Then question will be easy.

Dividend, face value and interest given all are given put all the value in basic formula.


Dividend-Face value = Market value-Interest.

Get the answer 75.

Okula said: (Jan 25, 2016)  
Can anyone solve this question in different method?

Balaji said: (Mar 5, 2016)  
Consider face value = 100.
Dividend = 6.

This Rs.6 is 8%.
Then we will find 100%.

That 100% is the answer.

Sid said: (Jul 25, 2016)  
6% stock means
The dividend is 6 on 100.

So to get 8 what is the investment(market value)
800/6 = 133.33.

I think option D might be the solution.

Rajiv said: (Jul 27, 2016)  
I agree with you @Sid.

Nolok said: (Jan 8, 2017)  
I think 133.33 will be the correct answer.

Harsha said: (Apr 16, 2017)  
Yes, I too think 133.33 is the right answer.

Mr Mp said: (Aug 30, 2017)  
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.

Amar said: (Nov 19, 2017)  
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.

Shena said: (Aug 3, 2018)  
I think 133.33 is the correct answer.

Arvind Vishnoi said: (Oct 31, 2018)  
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.

Prabha said: (Aug 2, 2019)  
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.

Ronaldo said: (Aug 26, 2019)  
What does stock mean?

How to calculate it?

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