Aptitude - Stocks and Shares - Discussion

Discussion Forum : Stocks and Shares - General Questions (Q.No. 12)
12.
A 12% stock yielding 10% is quoted at:
Rs. 83.33
Rs. 110
Rs. 112
Rs. 120
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 2 of 2.

Bhaskar said:   6 years ago
Can anyone tell me the meaning of "yeild" in the question?

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.

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.
(1)


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