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Shares - Quant/Math - CAT 2009
Question 4 the day:
September 05, 2003
The question for the day is from the topic of Shares.
- Ram buys Rs.100 shares at Rs.112. If he sells the shares after a year at Rs.132 after receiving a dividend of 8% just before selling, what is the net yield on his investment?
| (1) |
17.85% |
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(2) |
6.06% |
| (3) |
32% |
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(4) |
25% |
Correct Answer - (4)
Solution:
Purchase price of the share = Rs.112
Selling price of the share = Rs.132
Appreciation in price = Rs.20
Dividend received = 8% of face value = 8% of Rs.100 = Rs.8
Total amount of profit = Rs.20 + Rs.8 = Rs.28
Therefore, yield = (28/112) * 100 = 25%
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