Test Index

Stocks and Shares Practice Test 1

Question : 10 of 40

Marks: +1, -0

7\frac{1}{2}\%

at Rs 93.

Solution: 👈: Video Solution

Concept:

Annual income from a stock is calculated on its face value using the given dividend rate.

Explanation:

Face value of the stock is Rs

100

Dividend rate is

7\frac{1}{2}\% = 7.5\%

Annual income =

7.5\%

of Rs

100 = \frac{7.5}{100}\times 100

So, annual income = Rs

7.5

The market price Rs

93

only affects the yield, not the annual income.

Answer:

7.5

(Option D).

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