DS Q4

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Inspired: Junior | Next Rank: 30 Posts; Posts: 23; Joined: Sun May 24, 2009 7:27 am; Location: Glasgow

by Inspired » Tue Jan 19, 2010 6:55 am

23) A person buys a share for $ 50 and sells it for $ 52 after a year. What is the total profit made by him from the share?

(I) A company pays annual dividend
(II) The rate of dividend is 25%

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Source: Beat The GMAT — Data Sufficiency | Tue Jan 19, 2010 6:55 am

ajith: Legendary Member; Posts: 1275; Joined: Thu Sep 21, 2006 11:13 pmFollowed by: 2 members; Location: Arabian Sea; Thanked: 125 times

by ajith » Tue Jan 19, 2010 7:22 am

Inspired wrote:23) A person buys a share for $ 50 and sells it for $ 52 after a year. What is the total profit made by him from the share?

(I) A company pays annual dividend
(II) The rate of dividend is 25%

The actual profit made = Selling Price- Actual price + Dividends

Dividends can be paid Quarterly, Semi-Annually or Annually

So 1& 2 are required to calculate the profits

Always borrow money from a pessimist, he doesn't expect to be paid back.

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sars72: Master | Next Rank: 500 Posts; Posts: 241; Joined: Wed Jan 27, 2010 10:10 pmFollowed by: 2 members; Location: Chennai; Thanked: 23 times; GMAT Score:690

by sars72 » Thu Jan 28, 2010 12:53 pm

Do we need statement 1? Doesnt statement 2 imply that the company pays dividends?

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ajith: Legendary Member; Posts: 1275; Joined: Thu Sep 21, 2006 11:13 pmFollowed by: 2 members; Location: Arabian Sea; Thanked: 125 times

by ajith » Fri Jan 29, 2010 12:49 pm

sars72 wrote:Do we need statement 1? Doesnt statement 2 imply that the company pays dividends?

My assumption was if the company pays dividend quarterly, total profit's calculation will depend on that because we have to multiply dividend rate with stock price each quarter et al...

But if the dividend rate is given annually [ In all cases] then B is sufficient

Always borrow money from a pessimist, he doesn't expect to be paid back.

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harsh.champ: Legendary Member; Posts: 1132; Joined: Mon Jul 20, 2009 3:38 amFollowed by: 6 members; Location: India; Thanked: 64 times; GMAT Score:760

by harsh.champ » Mon Feb 01, 2010 2:20 am

well,first of all this question falls in the typical tricky ques. type......a person may just assume the dividend % to be computed annually and compute the answer..........but i do agree with anaik100,the answer should be E.

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ohwell: Junior | Next Rank: 30 Posts; Posts: 28; Joined: Sat Aug 16, 2008 7:10 pm; Thanked: 1 times

by ohwell » Sun Jun 13, 2010 7:24 pm

I hope that the answer is C, per Ajith.

I translate what is given to the following:
-The first statement says that the dividend is paid once a year.
-The second statement says that the dividend is 25% of the share.

Seems to me we can then calculate how much is earned from dividend.

What is the OA?

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