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A 14% stock yielding 8% is quoted at:
- a)Rs. 125
- b)Rs. 83.33
- c)Rs. 120
- d)Rs. 175
Correct answer is option 'D'. Can you explain this answer?
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Verified Answer
A 14% stock yielding 8% is quoted at:a)Rs. 125b)Rs. 83.33c)Rs. 120d)Rs...
Assume that face value = Rs.100 as it is not given
To earn Rs.8, money invested = Rs.100
To earn Rs.14, money invested =
100 ×14 / 8= Rs.175
100 ×14 / 8= Rs.175
ie, market value of the stock = Rs.175
Most Upvoted Answer
A 14% stock yielding 8% is quoted at:a)Rs. 125b)Rs. 83.33c)Rs. 120d)Rs...
To calculate the quoted price of a stock, we need to use the formula:
Quoted Price = Dividend / Yield
Given that the stock has a yield of 8% and yields a dividend of 14%, we can substitute these values into the formula:
Quoted Price = 14% / 8%
Simplifying the expression, we have:
Quoted Price = 1.75
Therefore, the quoted price of the stock is 1.75 times its dividend.
Now, let's calculate the quoted price in terms of rupees.
Given that the stock is quoted at Rs. 125, we can find the quoted price by dividing the stock price by the dividend:
Quoted Price = Rs. 125 / 14%
Simplifying the expression, we have:
Quoted Price = Rs. 125 / 0.14
Quoted Price = Rs. 892.86
Therefore, the quoted price of the stock is Rs. 892.86.
Now, let's check the options given:
a) Rs. 125: This is the stock price, not the quoted price.
b) Rs. 83.33: This is not the correct quoted price.
c) Rs. 120: This is not the correct quoted price.
d) Rs. 175: This is not the correct quoted price.
None of the given options match the calculated quoted price of Rs. 892.86.
Therefore, none of the options is the correct answer.
It seems that the given answer is incorrect.
Quoted Price = Dividend / Yield
Given that the stock has a yield of 8% and yields a dividend of 14%, we can substitute these values into the formula:
Quoted Price = 14% / 8%
Simplifying the expression, we have:
Quoted Price = 1.75
Therefore, the quoted price of the stock is 1.75 times its dividend.
Now, let's calculate the quoted price in terms of rupees.
Given that the stock is quoted at Rs. 125, we can find the quoted price by dividing the stock price by the dividend:
Quoted Price = Rs. 125 / 14%
Simplifying the expression, we have:
Quoted Price = Rs. 125 / 0.14
Quoted Price = Rs. 892.86
Therefore, the quoted price of the stock is Rs. 892.86.
Now, let's check the options given:
a) Rs. 125: This is the stock price, not the quoted price.
b) Rs. 83.33: This is not the correct quoted price.
c) Rs. 120: This is not the correct quoted price.
d) Rs. 175: This is not the correct quoted price.
None of the given options match the calculated quoted price of Rs. 892.86.
Therefore, none of the options is the correct answer.
It seems that the given answer is incorrect.
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A 14% stock yielding 8% is quoted at:a)Rs. 125b)Rs. 83.33c)Rs. 120d)Rs. 175Correct answer is option 'D'. Can you explain this answer?
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A 14% stock yielding 8% is quoted at:a)Rs. 125b)Rs. 83.33c)Rs. 120d)Rs. 175Correct answer is option 'D'. Can you explain this answer? for LR 2024 is part of LR preparation. The Question and answers have been prepared according to the LR exam syllabus. Information about A 14% stock yielding 8% is quoted at:a)Rs. 125b)Rs. 83.33c)Rs. 120d)Rs. 175Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for LR 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A 14% stock yielding 8% is quoted at:a)Rs. 125b)Rs. 83.33c)Rs. 120d)Rs. 175Correct answer is option 'D'. Can you explain this answer?.
A 14% stock yielding 8% is quoted at:a)Rs. 125b)Rs. 83.33c)Rs. 120d)Rs. 175Correct answer is option 'D'. Can you explain this answer? for LR 2024 is part of LR preparation. The Question and answers have been prepared according to the LR exam syllabus. Information about A 14% stock yielding 8% is quoted at:a)Rs. 125b)Rs. 83.33c)Rs. 120d)Rs. 175Correct answer is option 'D'. Can you explain this answer? covers all topics & solutions for LR 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A 14% stock yielding 8% is quoted at:a)Rs. 125b)Rs. 83.33c)Rs. 120d)Rs. 175Correct answer is option 'D'. Can you explain this answer?.
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