Solve this multiple-choice question and choose the correct option.

Given data Market price = Rs. 97 per Rs. 100 face value. Total outlay = Rs. 1552; income = Rs. 128. Concept / Approach First find the nominal (face) value purchased, then deduce the dividend rate from the income. Step-by-step calculationNominal purchased = (1552 / 97) × 100 = 1600 (since 97 × 16 = 1552)Let dividend rate be r%. Income = r% of 1600 = (r / 100) × 1600 = 16r16r = 128 ⇒ r = 8% VerificationAt 8% on Rs. 1600, income = 128 as given. Final Answer8%

Curioustab

A man invests Rs. 1552 in a stock at 97 to obtain an income of Rs. 128. What is the dividend rate of the stock?

Aptitude Stocks and Shares Difficulty: Easy

Choose an option

A

6%
B

7%
C

8%
D

9%

Answer

Correct Answer: 8%

Explanation

Given data

Market price = Rs. 97 per Rs. 100 face value.
Total outlay = Rs. 1552; income = Rs. 128.

Concept / Approach

First find the nominal (face) value purchased, then deduce the dividend rate from the income.

Step-by-step calculationNominal purchased = (1552 / 97) × 100 = 1600 (since 97 × 16 = 1552)Let dividend rate be r%. Income = r% of 1600 = (r / 100) × 1600 = 16r16r = 128 ⇒ r = 8%