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:
12 1 %
2
13 1 %
2
15%
16 2 %
3
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.

Nirbhay said:   2 decades ago
I have understand.
(1)

Bhagyashri said:   1 decade ago
If 20 shares @50 rs then 20*50=1000....but discount rs5 then it will be 20 shares in 45 rs ie. 20*45=900...thus man saves rs 100..

dividend rate is 13 1/2 =27/2.
He got dividend on rs 1000 @27/2
if 1000 is 100%
then ? is 27/2%

by cross multyplication it will be 1000*27/2/100
=135


if 900 is 100% then how much percent is 135

135*100/900= it will be = 15
(1)

Kavya said:   1 decade ago
What is the relationship between dividend and interest?

Shoeb said:   2 decades ago
How this is done. I have not understood.

Balaji said:   1 decade 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?

Abhishek said:   1 decade ago
@Balaji.

Interest = Dividend * 100/market value.
Here M.V. = 900 not 1000.

Ebenezer said:   1 decade ago
@Balaji.

I understood your explanation. Thank you.

A.john felix said:   1 decade ago
@ minakshi: its the amount (share on profit) given to a share holder every year.

Minakshi said:   1 decade ago
What is dividend?

Siva said:   1 decade ago
Well said bhagya.


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