Aptitude - Stocks and Shares - Discussion
Discussion Forum : Stocks and Shares - General Questions (Q.No. 12)
12.
A 12% stock yielding 10% is quoted at:
Answer: Option
Explanation:
To earn Rs. 10, money invested = Rs. 100.
| To earn Rs. 12, money invested = Rs. |  |
100 | x 12 |  |
= Rs. 120. |
| 10 |
Market value of Rs. 100 stock = Rs. 120.
Discussion:
13 comments Page 1 of 2.
Kashiv said:
2 years ago
Yield means what you get in return i.e interest.
Both interest and yield are same thing here.
Now,
Since, interest=dividend/market value ---> (eq1)
Interest=10%.
Dividend=12%.
Let the eMarket value be x.
Let face value be 100.
Thus,
Dividend=12% of the face value.
D = 12.
From eq1.
10/100 = 12/x.
X = 12 * 100/10.
X = 120.
Or market value=120.
Both interest and yield are same thing here.
Now,
Since, interest=dividend/market value ---> (eq1)
Interest=10%.
Dividend=12%.
Let the eMarket value be x.
Let face value be 100.
Thus,
Dividend=12% of the face value.
D = 12.
From eq1.
10/100 = 12/x.
X = 12 * 100/10.
X = 120.
Or market value=120.
(1)
SERGI said:
5 years ago
@All.
we don't know face value ,so consider 100
we don't know the investment, so consider 100
take market value 'x'
now
*question in detail*
a stock bought at 12% of face value if sold at 'x' market value would yield 10% of face value
{12% of face value ÷ x }* investment = 10% of face value.
{ (12/100) ÷ x } * 100 = 10/100.
Simplify ,
12÷x = 10/100,
x=120.
we don't know face value ,so consider 100
we don't know the investment, so consider 100
take market value 'x'
now
*question in detail*
a stock bought at 12% of face value if sold at 'x' market value would yield 10% of face value
{12% of face value ÷ x }* investment = 10% of face value.
{ (12/100) ÷ x } * 100 = 10/100.
Simplify ,
12÷x = 10/100,
x=120.
Bhaskar said:
6 years ago
Can anyone tell me the meaning of "yeild" in the question?
Habibur Rahman said:
7 years ago
Why not 83.33m?
Vijay said:
7 years ago
Market price= dividend earning/required rate of return.
Let us suppose issue price = 100,
Then dividend = 100*10%=10,
Then market price= 10/12%= 83.33 rs.
Let us suppose issue price = 100,
Then dividend = 100*10%=10,
Then market price= 10/12%= 83.33 rs.
Sush said:
8 years ago
Rs 12 =10% of x.
then x =120.
then x =120.
Rupali said:
8 years ago
Suppose face value of stock is rs 100 then it yield 10% means rs 10.
Now, if is sold at rs x, then again it yields rs 10.
But now as per question it yields 12% then,
Yield = (10/x*100) = 12,
= rs 83.33.
Now, if is sold at rs x, then again it yields rs 10.
But now as per question it yields 12% then,
Yield = (10/x*100) = 12,
= rs 83.33.
Chaitanya said:
9 years ago
To earn 12% money invested is Rs.100.
To earn 10% money invested is (100/12 * 10 = 83.33).
Market value of a stock is Rs.83.333.
To earn 10% money invested is (100/12 * 10 = 83.33).
Market value of a stock is Rs.83.333.
Sukumar Satyen said:
1 decade ago
When Face Value and Market Value is not given, it is assumed that either of these is on 100 basis points when Dividend and Dividend Yield (Interest rate) are given in percentage.
=> Dividend Yield or Rate of Interest = Face Value * Dividend / Market Value.
=> 10 = 100 *12 / Market Value.
=> Market Value = 100*12/10 = Rs.120.
=> Dividend Yield or Rate of Interest = Face Value * Dividend / Market Value.
=> 10 = 100 *12 / Market Value.
=> Market Value = 100*12/10 = Rs.120.
(1)
Mahesh said:
1 decade ago
@Nitish what is I? and from where you got this relation please explain.
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