A 16% stock yielding 8% is quoted at?
A 16% stock yielding 8% is quoted at?
Answer/Solution
200
Steps/Work
Assume that face value = Rs.100 as it is not given
To earn Rs.8, money invested = Rs.100
To earn Rs.16, money invested = 100×16/8 = Rs.175
ie, market value of the stock = Rs.200
Answer is E.
To earn Rs.8, money invested = Rs.100
To earn Rs.16, money invested = 100×16/8 = Rs.175
ie, market value of the stock = Rs.200
Answer is E.