Aptitude - Stocks and Shares - Discussion
Discussion Forum : Stocks and Shares - General Questions (Q.No. 1)
1.
In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of:
Answer: Option
Explanation:
To obtain Rs. 10, investment = Rs. 96.
| To obtain Rs. 650, investment = Rs. |  |
96 | x 650 |  |
= Rs. 6240. |
| 10 |
Discussion:
52 comments Page 2 of 6.
Bivhu said:
8 years ago
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.
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.
Khurshed said:
8 years ago
@Namit Jain.
Thanks for your explanation. I think it is a good explanation.
Thanks for your explanation. I think it is a good explanation.
Saurav Chakravarty said:
8 years ago
I guess the answer should be Rs 6500. Because if 10% is the profit per share then 10% of 6500/- makes 650/-. But 10% of 6240 makes 624/- which is not the desired profit 650.
Nawal kumar said:
9 years ago
What is stock value?
Deepika nithya kavitha said:
9 years ago
Thank you all for explaining the solution.
Charishma said:
9 years ago
Nice explanation. Thank you all.
Harshit said:
9 years ago
Very clear explanation, thanks @Namit.
Bunny said:
9 years ago
Here, 10/100 = 0.1.
Shubham said:
9 years ago
That's the correct solution. @Namit Jain.
Srinu said:
9 years ago
10/100 * x = 650.
Ans = 6500
Why Rs = 10 value is used?
Ans = 6500
Why Rs = 10 value is used?
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