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.
Mr MP said:
8 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.
Adheer said:
5 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.
Jawahar said:
1 decade ago
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.
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.
Sergi said:
6 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.
(7)
Amar said:
8 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)
Arvind vishnoi said:
7 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.
Prabha said:
6 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.
Rekha .B said:
4 years ago
Let the investment amount be Rs 100, and yeild be 8% and interest be 6%. Therefore, formula is: asummed amt ÷ yeild amt * interest amt : 100/0.8 * 0.6 = 75.
Ajay said:
1 decade ago
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.
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.
SID said:
9 years ago
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.
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.
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