What is the total value of Company H's Stock?
(1) Investor P owns 1/4 of the shares of Company H's total stock.
(2) The total value of Investor Q's shares of Company H's stock is $16,000.
C or E?
Target Test Prep is 20% off right now!
Use code FLASH20
Available with Beat the GMAT members only code
MORE DETAILS
Company H
This topic has expert replies
-
GMATGuruNY
- GMAT Instructor
- Posts: 15539
- Joined: Tue May 25, 2010 12:04 pm
- Location: New York, NY
- Thanked: 13060 times
- Followed by:1906 members
- GMAT Score:790
Statements combined:Abhijit K wrote:What is the total value of Company H's Stock?
(1) Investor P owns 1/4 of the shares of Company H's total stock.
(2) The total value of Investor Q's shares of Company H's stock is $16,000.
Case 1: Total value of Company H's stock = $32,000
In this case, Q's $16,000 represents 1/2 of Company H's stock, and the value of P's stock = (1/4)(32,000) = $8000.
Case 2: Total value of Company H's stock = $48,000
In this case, Q's $16,000 represents 1/3 of Company H's stock, and the value of P's stock = (1/4)(48000) = $12,000.
Since the total value of Company H's stock can be different values, INSUFFICIENT.
The correct answer is E.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.
As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.
For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3
GMAT/MBA Expert
-
[email protected]
- Elite Legendary Member
- Posts: 10392
- Joined: Sun Jun 23, 2013 6:38 pm
- Location: Palo Alto, CA
- Thanked: 2867 times
- Followed by:511 members
- GMAT Score:800
Hi Abhijit K,
This question is an example of a DS prompt that you can mostly "talk your way through." Most DS questions involve some type of calculations, but a few are more about logic than anything else. It still helps to take notes though....
Here, we're asked for the TOTAL VALUE of Company H's stock.
Fact 1: Investor P owns 1/4 of the shares.
This tells us nothing about the value of those shares nor the value of the total.
Fact 1 is INSUFFICIENT.
Fact 2: The value of Investor Q's shares is $16,000
This tell us nothing about the FRACTION of the shares that Investor Q owns, so we can't figure out the total value of all the shares.
Fact 2 is INSUFFICIENT
Combined, we know....
Investor P owns 1/4 of the shares
Investor Q owns $16,000 worth of shares
Unfortunately, we don't know how many total investors there are, so there is no way to 'link' these two pieces of information. We don't know what Investor P's shares are worth and we don't know what fraction of shares Investor Q owns.
Combined, INSUFFICIENT.
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
This question is an example of a DS prompt that you can mostly "talk your way through." Most DS questions involve some type of calculations, but a few are more about logic than anything else. It still helps to take notes though....
Here, we're asked for the TOTAL VALUE of Company H's stock.
Fact 1: Investor P owns 1/4 of the shares.
This tells us nothing about the value of those shares nor the value of the total.
Fact 1 is INSUFFICIENT.
Fact 2: The value of Investor Q's shares is $16,000
This tell us nothing about the FRACTION of the shares that Investor Q owns, so we can't figure out the total value of all the shares.
Fact 2 is INSUFFICIENT
Combined, we know....
Investor P owns 1/4 of the shares
Investor Q owns $16,000 worth of shares
Unfortunately, we don't know how many total investors there are, so there is no way to 'link' these two pieces of information. We don't know what Investor P's shares are worth and we don't know what fraction of shares Investor Q owns.
Combined, INSUFFICIENT.
Final Answer: E
GMAT assassins aren't born, they're made,
Rich
