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by Ajitpal Sian » Wed Nov 02, 2011 10:08 pm
Mr. Oduste owns two kinds of stock shares: r shares of stock x and r shares of stock y. stock x yields an annual dividend of 2%, while stick y yields an annual dividend of 6%. If mr. Oduste were to sell all of his shares of stock x and use that money to buy shares of stock y, by what percent would his annual dividend increase.
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Source: — Data Sufficiency |

by Ajitpal Sian » Wed Nov 02, 2011 10:09 pm
Can anyone please explain this DS in detail
Ajitpal Sian wrote:Mr. Oduste owns two kinds of stock shares: r shares of stock x and r shares of stock y. stock x yields an annual dividend of 2%, while stick y yields an annual dividend of 6%. If mr. Oduste were to sell all of his shares of stock x and use that money to buy shares of stock y, by what percent would his annual dividend increase.
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by shankar.ashwin » Wed Nov 02, 2011 10:34 pm
If its a DS problem can you post the 2 statements?
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by gmatblood » Wed Nov 02, 2011 11:23 pm
Ajitpal Sian wrote:Mr. Oduste owns two kinds of stock shares: r shares of stock x and r shares of stock y. stock x yields an annual dividend of 2%, while stick y yields an annual dividend of 6%. If mr. Oduste were to sell all of his shares of stock x and use that money to buy shares of stock y, by what percent would his annual dividend increase.
Pls post the 2 data points
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by Ajitpal Sian » Thu Nov 03, 2011 2:23 am
Plz find the two statements:

(1) each share of stock X costs twice as much as each share of stock Y

(2) Each share of stock Y costs $45
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by neelgandham » Thu Nov 03, 2011 3:19 am
Plz find the two statements:

(1) each share of stock X costs twice as much as each share of stock Y - Sufficient !

(2) Each share of stock Y costs $45 - Insufficient !

IMO A
Anil Gandham
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by shankar.ashwin » Thu Nov 03, 2011 3:24 am
Ok, He has equal shares (r) of stocks 'X' and 'Y'.

Assume he has 100 shares of each.

Total cost of share X = 100X , where 'X' is cost of one.
Total cost of share Y = 100Y, where 'Y' is cost of one share.

After one year, X would yield 102X and Y would yield 106Y.

Statement 1

X costs twice as much as Y; X = 2Y.

If he were to sell the 100 shares of 'X', he can now buy 200 stocks of 'Y'. (or) now have a total of 300 'Y' stocks.
Now X costs twice as much as Y, assume any value for 'Y', say 1. X would be 2.

Originally he would have got 102*2 = 204 from X and 106*1 = 106 from 'Y' had he invested 300 in total (200-X and 100-Y)
Now his returns would be 310.

If he had invested all 300 in Y, his returns would be 318 now. So we can determine the % change here. Sufficient.

Statement 2:

Y costs $45. Here we don't know cost of 'X' and we cannot find how many 'Y' stocks he can buy selling all his 'X'. Insuff.
A IMO
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by Ajitpal Sian » Fri Nov 04, 2011 12:44 am
Thanks for the explanation!!!!
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