# Aptitude - Stocks and Shares - Discussion

Discussion Forum : Stocks and Shares - General Questions (Q.No. 2)

2.

A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being 13. The rate of interest obtained is:

Answer: Option

Explanation:

Investment = Rs. [20 x (50 - 5)] = Rs. 900.

Face value = Rs. (50 x 20) = Rs. 1000.

Dividend = Rs. | 27 | x | 1000 | = Rs. 135. | ||

2 | 100 |

Interest obtained = | 135 | x 100 | % | = 15% | |

900 |

Discussion:

27 comments Page 2 of 3.
Ebenezer said:
8 years ago

@Balaji.

I understood your explanation. Thank you.

I understood your explanation. Thank you.

Abhishek said:
8 years ago

@Balaji.

Interest = Dividend * 100/market value.

Here M.V. = 900 not 1000.

Interest = Dividend * 100/market value.

Here M.V. = 900 not 1000.

Balaji said:
8 years ago

Actually dividend is calculated as per face value.

Here, face value = 1000,

Dividend = 135,

Interest will be 135*100/1000 = 27/2%.

Is it or not?

Will you please clarify me?

Here, face value = 1000,

Dividend = 135,

Interest will be 135*100/1000 = 27/2%.

Is it or not?

Will you please clarify me?

Nipun Jain said:
9 years ago

The simplest method and easy to understand is :-.

He gets dividend of 27/2 on a Rs. 50 (Face value share).

Dividend is money given on the face value of share of the company you purchase which is set by the company no matter you buy it at a discount or a profit.

So here dividend of Rs. 50 share will be = 27/2 * 50/100 per share = 27/4.

No. of shares = 20.

Total Dividend (Income) = 20*27/4 = Rs. 135.

Rate of Interest = Income/Investment * 100.

Investment = 20* (50-5) = 900.

Rate of Interest = 135/900*100 = 15%.

He gets dividend of 27/2 on a Rs. 50 (Face value share).

Dividend is money given on the face value of share of the company you purchase which is set by the company no matter you buy it at a discount or a profit.

So here dividend of Rs. 50 share will be = 27/2 * 50/100 per share = 27/4.

No. of shares = 20.

Total Dividend (Income) = 20*27/4 = Rs. 135.

Rate of Interest = Income/Investment * 100.

Investment = 20* (50-5) = 900.

Rate of Interest = 135/900*100 = 15%.

(1)

Kavya said:
9 years ago

What is the relationship between dividend and interest?

Sanju said:
9 years ago

Its easy folks think out of box ;).

Tanuvi said:
10 years ago

@Bharthi. The improper fraction of 13 and a half is 27/2 [(2*13)+1].

Bharathi said:
1 decade ago

How rate of dividend is calculated as 27/2?

Ravi kiran narra said:
1 decade ago

Use this formula u can get easy way to answer.

Rate of return * Market value = Rate of dividend * face value.

Rate of return *45 = 27/2* 50.

So Rate of return = (27*50)/(2*45).

= 15.

Rate of return * Market value = Rate of dividend * face value.

Rate of return *45 = 27/2* 50.

So Rate of return = (27*50)/(2*45).

= 15.

(1)

Saroja said:
1 decade ago

Thanks Mr.Krishna.

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