Q1: A man invests some money partly in 12% stock at 105 and partly in 8% stock at 88. To obtain equal dividends from both, he must invest the money in the ratio:
Answers
Answer:
Answer: Option D
Explanation:
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Solution 1
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In case of stock1, if he invest Rs.105, he will get a dividend of Rs.12 (assume face value = 100)
In case of stock2, if he invest Rs.88, he will get a dividend of Rs.8 (assume face value = 100)
ie, if he invest Rs.(88*12)/8, he will get a dividend of Rs.12
Required ratio = 105 : (88 × 12)/8 = 105 : (11 × 12) = 35 : (11 × 4) = 35 : 44
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Solution 2
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Let the amount of money he invest in 12% stock = P
Then, Number of shares = P/105 (where 105 is the market value per share)
Total dividend = (P/105) × 12 (Assume face value = Rs.100 and hence dividend per share = Rs.12)
Let the amount of money he invest in 8% stock = Q
Then, Number of shares = Q/88 (where 88 is the market value per share)
Total dividend = (Q/88)× 8 (Assume face value = Rs.100 and hence dividend per share = Rs.8)
If both needs to give equal dividends,
P
105
×
12
=
Q
88
×
8
P
Q
=
8
×
105
88
×
12
=
105
11
×
12
=
35
11
×
4
=
35
44
P:Q = 35:44
Step-by-step explanation:
Answer:
I don't know
Step-by-step explanation:
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