Aptitude - Stocks and Shares - Discussion
Discussion Forum : Stocks and Shares - General Questions (Q.No. 4)
4.
A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. The market value of each share is:
Answer: Option
Explanation:
| Dividend on Rs. 20 = Rs. |  |
9 | x 20 |  |
= Rs. | 9 | . |
| 100 | 5 |
Rs. 12 is an income on Rs. 100.
 Rs. |
9 | is an income on Rs. | |
100 | x | 9 | |
= Rs. 15. |
| 5 | 12 | 5 |
Discussion:
16 comments Page 2 of 2.
Chandru said:
1 decade ago
Stock with a Face Value of Rs.20 is yielding 9% divident and is trading at Rs.X.
What is the Value of Rs.X is the Question?
Earning on Rs.1.8/x=12%; x = Rs.15.
What is the Value of Rs.X is the Question?
Earning on Rs.1.8/x=12%; x = Rs.15.
Nethra said:
1 decade ago
How can you multiply interest rate with dividend to find out market value. Does it has any formula? if not please explain me calculations step by step.
Zohaib said:
1 decade ago
20 * 9% = x * 12%.
1.8 = x * 12%.
1.8/12% = x.
15 = x.
1.8 = x * 12%.
1.8/12% = x.
15 = x.
Bhargava said:
8 years ago
Here, He bought at 21.8 and he has to get 12% interest on his investment of 21.8 which means 24.416. Or there must be a disconnect between the two statements.
Gowtham acharya said:
7 years ago
(((9/5)/market value)*20) = (20*12%) so market value will be 15.
Tanmay said:
4 years ago
I like this explanation. Thanks all for explaining.
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