A 6% stock yields 8%. The market value of the stock is:___________?
Correct answer: B. Rs. 75
- A. Rs. 48
- B. Rs. 75
- C. Rs. 96
- D. Rs. 133.33
Explanation
For Rs. 100 face value, a 6% stock pays Rs. 6 income annually. If the yield is 8%, its market value is Rs. 6 x 100/8 = Rs. 75. The likely trap is Rs. 96, which confuses this stock's market value with another percentage-based quotation.
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About Profit and Loss
Profit and loss compare the cost price and selling price of an item, using profit or loss percentages based on the cost price unless stated otherwise. Questions include marked price, discount, successive discounts, commission, and finding an unknown price, with care needed to distinguish discount from loss.
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