one more..tough

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raunekk: Legendary Member; Posts: 1159; Joined: Wed Apr 16, 2008 10:35 pm; Thanked: 56 times

by raunekk » Mon Jun 16, 2008 5:41 am

8. 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%
(A) Statement (I) ALONE is sufficient, but statement (II) alone is not sufficient
(B) Statement (II) ALONE is sufficient, but statement (I) is not sufficient
(C) BOTH statements TOGETHER are sufficient, but NEITHER statement alone is sufficient
(D) Each statement ALONE is sufficient
(E) Statements (I) and (II) TOGETHER are NOT sufficient

Source: Beat The GMAT — Data Sufficiency | Mon Jun 16, 2008 5:41 am

anshul265: Senior | Next Rank: 100 Posts; Posts: 71; Joined: Thu Jan 31, 2008 7:01 am; Thanked: 2 times

by anshul265 » Mon Jun 16, 2008 5:55 am

Is the answer C?

raunekk: Legendary Member; Posts: 1159; Joined: Wed Apr 16, 2008 10:35 pm; Thanked: 56 times

??

by raunekk » Mon Jun 16, 2008 8:06 am

i dont know d answer:(..can u tell me how u got c???

anshul265: Senior | Next Rank: 100 Posts; Posts: 71; Joined: Thu Jan 31, 2008 7:01 am; Thanked: 2 times

by anshul265 » Mon Jun 16, 2008 9:59 am

Both things, dividend rate and its frequency, are imp to find out the amount earned.

It has to be C.

durgesh79: Master | Next Rank: 500 Posts; Posts: 167; Joined: Tue Apr 22, 2008 12:48 am; Thanked: 15 times

by durgesh79 » Mon Jun 16, 2008 11:11 am

I dont think its a good GMAT question. Source please.

Few things you need to know about shares to answer such questions.

Dividend is paid on the original value (face value) of a share. We dont know the face value of the share. we dont know if the person baught it from share market or directly from company.

Answer E.

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Ian Stewart: GMAT Instructor; Posts: 2623; Joined: Mon Jun 02, 2008 3:17 amFollowed by: 355 members; Location: Montreal; Thanked: 1090 times; GMAT Score:780

by Ian Stewart » Mon Jun 16, 2008 4:30 pm

durgesh79 wrote:I dont think its a good GMAT question. Source please.

Agreed! The question is too vague to answer- best to ignore and move on, since you'll never see something like this on a real GMAT.

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