Aptitude - Stocks and Shares - Discussion

Number of shares bought = (1620/Market value).

Total dividend amount = (1620/Market value)*(8/100).

Income = Rs.135.

Total dividend amount = Income.

=> (1620/Market value)*(8/100) = 135.

=> Market value = Rs.0.96.

How can you assume the stock is 100 Rs?

Is it that we should assume the face value as 100Rs, when it is not mentioned in the question?

Total number of mark 8/20.

According to me, we can solve this by;

1st method- Formula oriented
consider face value of the stock be 100 and x be the market value (quoted value) of the stock when its sold.

{(8% of 100) / x } * 1620 = 135.
( 8 / x ) * 1620 = 135,
8/x=135/1620,
x=8/0.0833333,
x=96.

2nd method - logical.

" he bought the stock when it was 8% of face value and sold when it was some x % of market value(quoted value) which got him 135 earning "
from this, you can say.

*some % of investment is income*
(8% ÷ x %) of 1620 = 135.
(8/100 ÷ x/100 ) 1620 =135.
simplify, x = 96.