A person buys a share for $50 and sells it for$ 52 after a : GMAT Data Sufficiency (DS)
Check GMAT Club Decision Tracker for the Latest School Decision Releases http://gmatclub.com/AppTrack

 It is currently 22 Jan 2017, 22:52

GMAT Club Daily Prep

Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

A person buys a share for $50 and sells it for$ 52 after a

Author Message
TAGS:

Hide Tags

Intern
Joined: 18 Feb 2008
Posts: 29
Followers: 0

Kudos [?]: 0 [0], given: 0

A person buys a share for $50 and sells it for$ 52 after a [#permalink]

Show Tags

05 Jul 2008, 00:18
00:00

Difficulty:

(N/A)

Question Stats:

100% (01:22) correct 0% (00:00) wrong based on 18 sessions

HideShow timer Statistics

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%
Current Student
Joined: 18 Jun 2008
Posts: 228
Followers: 2

Kudos [?]: 58 [0], given: 3

Show Tags

05 Jul 2008, 03:38
saurabhkowley18 wrote:
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%

total profit = profit from selling share + dividend
profit from selling share = $2 I) insuff since we don't know dividend II) insuff since we don't know the frequency of dividends I&II => suff, we have both profit from shares & dividend & dividend frequency Answer should be C Manager Joined: 03 Jun 2008 Posts: 136 Schools: ISB, Tuck, Michigan (Ross), Darden, MBS Followers: 2 Kudos [?]: 39 [0], given: 0 Re: DS [#permalink] Show Tags 05 Jul 2008, 11:10 saurabhkowley18 wrote: 8. A person buys a share for$ 50 and sells it for $52 after a year. What is the total profit made by him from the share? (I) A company pays annual dividend (II) The rate of dividend is 25% The answer is E. The face value is not given for us to calculate the dividend. _________________ ----------------------------------------------------------- 'It's not the ride, it's the rider' VP Joined: 03 Apr 2007 Posts: 1367 Followers: 4 Kudos [?]: 613 [0], given: 10 Re: DS [#permalink] Show Tags 06 Jul 2008, 19:03 saurabhkowley18 wrote: 8. A person buys a share for$ 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% This question is more like a general knowledge question than a GMAT DS question Director Joined: 14 Aug 2007 Posts: 733 Followers: 10 Kudos [?]: 182 [0], given: 0 Re: DS [#permalink] Show Tags 06 Jul 2008, 22:01 goalsnr wrote: This question is more like a general knowledge question than a GMAT DS question Manager Joined: 14 Jun 2007 Posts: 170 Location: Vienna, Austria Followers: 1 Kudos [?]: 7 [0], given: 0 Re: DS [#permalink] Show Tags 16 Jul 2008, 10:11 friends, can someone please conform if either C or E is correct? cheers SVP Joined: 30 Apr 2008 Posts: 1887 Location: Oklahoma City Schools: Hard Knocks Followers: 40 Kudos [?]: 570 [0], given: 32 Re: DS [#permalink] Show Tags 16 Jul 2008, 10:17 It has to be E because in order for us to know 25% of what, we have to know the date the dividend was declared and the value as of the date the company declares as the dividend date. Stock might be$52 now, but if the dividend date is figured as of 2 weeks ago when the stock was $49.50. _________________ ------------------------------------ J Allen Morris **I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a$$. GMAT Club Premium Membership - big benefits and savings Manager Joined: 11 Apr 2008 Posts: 128 Location: Chicago Followers: 1 Kudos [?]: 49 [0], given: 0 Re: DS [#permalink] Show Tags 16 Jul 2008, 11:18 jasonc wrote: saurabhkowley18 wrote: 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% total profit = profit from selling share + dividend profit from selling share =$2

I) insuff since we don't know dividend
II) insuff since we don't know the frequency of dividends

I&II => suff, we have both profit from shares & dividend & dividend frequency

E.

You don't know the base for which the dividend was applied (stocls do not have face values), you don't know the inflation rate (this will eat away at your profit), you don't know the commission charge, exchange fee, etc. --- Definitely a general knowledge question, not a GMAT question.
_________________

Factorials were someone's attempt to make math look exciting!!!

SVP
Joined: 17 Jun 2008
Posts: 1569
Followers: 11

Kudos [?]: 250 [0], given: 0

Show Tags

16 Jul 2008, 15:05
GMBAB5......good catch.

Director
Joined: 24 Aug 2007
Posts: 954
WE 1: 3.5 yrs IT
WE 2: 2.5 yrs Retail chain
Followers: 76

Kudos [?]: 1272 [0], given: 40

Show Tags

17 Apr 2010, 10:56
IMO E.

You also don't know whether the person sold the share before/after dividend declared.
_________________

Tricky Quant problems: http://gmatclub.com/forum/50-tricky-questions-92834.html
Important Grammer Fundamentals: http://gmatclub.com/forum/key-fundamentals-of-grammer-our-crucial-learnings-on-sc-93659.html

Re: DS   [#permalink] 17 Apr 2010, 10:56
Similar topics Replies Last post
Similar
Topics: