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:
9 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%.
(2)
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:
1 decade 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.
Post your comments here:
Quick links
Quantitative Aptitude
Verbal (English)
Reasoning
Programming
Interview
Placement Papers