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question explanation

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Intern
Joined: 15 Nov 2009
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Kudos [?]: 1 [0], given: 1

question explanation [#permalink]  23 Nov 2009, 04:39
Last year Mrs. Long received $160 in dividends on her shares of Company X stock, all of which she had held for the entire year. If she had had 12 more shares of the stock last year, she would have received$15 more in total annual dividends. How many shares of the stock did she have last year?
(A) 128
(B) 140
(C) 172
(D) 175
(E) 200
Senior Manager
Joined: 30 Aug 2009
Posts: 293
Location: India
Concentration: General Management
Followers: 2

Kudos [?]: 78 [0], given: 5

Re: question explanation [#permalink]  23 Nov 2009, 06:46
and why ?

lets consider Mrs Long has "n" shares of Company X. dividend is paid on the basis of the number of shares held for a certain duration (here one year) then dividend per share is 160/n.

q says that if she had 12 more shares she would had got 15$more. so 160/n = (160+15)/(n+12). solving this we get n=128. SVP Joined: 30 Apr 2008 Posts: 1893 Location: Oklahoma City Schools: Hard Knocks Followers: 27 Kudos [?]: 398 [0], given: 32 Re: question explanation [#permalink] 23 Nov 2009, 09:39 12 more shares =$15 more is 15/12 to get the per share cost. That's 1.25, or 5/4 per share

so \frac{5}{4}=\frac{160}{n} = \frac{4*160}{5} = 4*32 = 128.

reduce where you can
Last year Mrs. Long received $160 in dividends on her shares of Company X stock, all of which she had held for the entire year. If she had had 12 more shares of the stock last year, she would have received$15 more in total annual dividends. How many shares of the stock did she have last year?
(A) 128
(B) 140
(C) 172
(D) 175
(E) 200

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J Allen Morris
**I'm pretty sure I'm right, but then again, I'm just a guy with his head up his a.

Senior Manager
Joined: 21 Jul 2009
Posts: 368
Schools: LBS, INSEAD, IMD, ISB - Anything with just 1 yr program.
Followers: 14

Kudos [?]: 91 [0], given: 22

Re: question explanation [#permalink]  23 Nov 2009, 11:11
kp1811 wrote:
dividend is paid on the basis of the number of shares held for a certain duration.

I knew I had to know this some time or the other!!!!
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I am AWESOME and it's gonna be LEGENDARY!!!

Senior Manager
Joined: 30 Aug 2009
Posts: 293
Location: India
Concentration: General Management
Followers: 2

Kudos [?]: 78 [0], given: 5

Re: question explanation [#permalink]  23 Nov 2009, 11:37
SensibleGuy wrote:
kp1811 wrote:
dividend is paid on the basis of the number of shares held for a certain duration.

I knew I had to know this some time or the other!!!!

better late than never !!!!
Re: question explanation   [#permalink] 23 Nov 2009, 11:37
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