### Discussion :: Stocks and Shares - General Questions (Q.No.12)

Harshini said: (Sep 14, 2011) | |

I can't understand the explanation. |

Rahul said: (May 22, 2012) | |

It should be A. Let stock be quoted as x 12% of x =10 x=83.33. |

Nitish said: (Aug 2, 2013) | |

D*F.V = I*M.V. Here, d = dividend, f.v = face value, m.v = market value, So,12*100 = 10*x. =>x=120. |

Mahesh said: (Nov 27, 2013) | |

@Nitish what is I? and from where you got this relation please explain. |

Sukumar Satyen said: (Apr 26, 2015) | |

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. |

Chaitanya said: (Oct 19, 2016) | |

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. |

Rupali said: (Apr 23, 2017) | |

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. |

Sush said: (Jan 9, 2018) | |

Rs 12 =10% of x. then x =120. |

Vijay said: (Apr 16, 2018) | |

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. |

Habibur Rahman said: (May 23, 2018) | |

Why not 83.33m? |

Bhaskar said: (Jul 19, 2019) | |

Can anyone tell me the meaning of "yeild" in the question? |

Sergi said: (Feb 2, 2020) | |

@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. |

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