Aptitude - Stocks and Shares - Discussion

@Namit Jain.

Thanks for explaining it so clearly!

Here,

Market Price=96 Rs.

Dividend=10% of face value(since, here face value is not given so we take it as 100 Rs).
= profit per share =(10/100)*100=10 Rs.

This means,
On buying a share at the market price of 96 Rs earning is 10 Rs.
Therefore,
In order to earn 1 Rs as a profit, we have to invest = (96/10) = 9.6 Rs.

So,
To earn 650 Rs.
We have to invest = 650 * 9.6 = 6240 Rs.
Therefore, the answer will be option B.

Which formula applies here exactly?

Thanks for the answer @Namit Jain.

No.of share = 650 (total income)/income per share.
i.e.10 = 65.
So,
Investment per share= 96.
Investment for 65 shares= 96*65= 6240.

Thank you @Namit Jain.

Dividend rate -10%.
Market price - 96.
Expected income - 650.
Income from one share = 96*10% =9.6.
So, investment require for getting 650 return = (650/9.6)*96.
= 6500.

The answer is not 6240.
The rate of return is 10%.
Return=6240*10%=624 not 650.

Dividend rate= 10,
Market price = Rs.96,
Income = Rs.650,
Investment = (income * market price )/dividend rate,
Investment = (650*96)/10,
= 6240.

A man purchased shares worth rs 18900 when the market price was rs 94. 50. Out of those shares, he sold shares of face value rs 12600 when the market price was rs 104, and sold the remaining shares at rs 98. He had to pay 1.5% brokerage each time. What was his gain or loss on the whole?

Can anyone solve this?

Current Market Value = Rs. 96.
Required Income = Rs. 650.

Face Value is not given. We always assume face value as Rs. 100 when it's not mentioned in the question. and the dividend is always given on face value!. So you earn Rs. 10 (i.e 10% of Face Value which is 100) even if you purchase the shares at Rs. 96 (which is the current market value).

So if you earn Rs. 10 on each share, you need 65 shares to earn Rs 650. at current market price Rs. 96, you need to invest 96*65 which are Rs. 6240.