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one more..tough

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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
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Source: — Data Sufficiency |
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by anshul265 » Mon Jun 16, 2008 5:55 am
Is the answer C?
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??

by raunekk » Mon Jun 16, 2008 8:06 am
i dont know d answer:(..can u tell me how u got c???
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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.
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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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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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