It is currently 12 Dec 2017, 19:47

Close

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
Your Progress

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

Not interested in getting valuable practice questions and articles delivered to your email? No problem, unsubscribe here.

Close

Request Expert Reply

Confirm Cancel

Events & Promotions

Events & Promotions in June
Open Detailed Calendar

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

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  
Author Message
Intern
Intern
avatar
Joined: 18 Feb 2008
Posts: 29

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

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

Show Tags

New post 05 Jul 2008, 00:18
00:00
A
B
C
D
E

Difficulty:

(N/A)

Question Stats:

100% (00:22) correct 0% (00:00) wrong based on 27 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%

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

Current Student
User avatar
Joined: 18 Jun 2008
Posts: 225

Kudos [?]: 59 [0], given: 3

Re: DS [#permalink]

Show Tags

New post 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

Kudos [?]: 59 [0], given: 3

Manager
Manager
avatar
Joined: 03 Jun 2008
Posts: 134

Kudos [?]: 47 [0], given: 0

Schools: ISB, Tuck, Michigan (Ross), Darden, MBS
Re: DS [#permalink]

Show Tags

New post 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'

Kudos [?]: 47 [0], given: 0

VP
VP
User avatar
Joined: 03 Apr 2007
Posts: 1339

Kudos [?]: 876 [0], given: 10

Reviews Badge
Re: DS [#permalink]

Show Tags

New post 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 :)

Kudos [?]: 876 [0], given: 10

Director
Director
avatar
Joined: 14 Aug 2007
Posts: 726

Kudos [?]: 222 [0], given: 0

Re: DS [#permalink]

Show Tags

New post 06 Jul 2008, 22:01
goalsnr wrote:

This question is more like a general knowledge question than a GMAT DS question :)


:-D

Kudos [?]: 222 [0], given: 0

Manager
Manager
avatar
Joined: 14 Jun 2007
Posts: 166

Kudos [?]: 10 [0], given: 0

Location: Vienna, Austria
Re: DS [#permalink]

Show Tags

New post 16 Jul 2008, 10:11
friends, can someone please conform if either C or E is correct?

cheers

Kudos [?]: 10 [0], given: 0

SVP
SVP
User avatar
Joined: 30 Apr 2008
Posts: 1863

Kudos [?]: 627 [0], given: 32

Location: Oklahoma City
Schools: Hard Knocks
Re: DS [#permalink]

Show Tags

New post 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

Kudos [?]: 627 [0], given: 32

Manager
Manager
User avatar
Joined: 11 Apr 2008
Posts: 128

Kudos [?]: 62 [0], given: 0

Location: Chicago
Re: DS [#permalink]

Show Tags

New post 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

Answer should be C


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. :roll:
_________________

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

Kudos [?]: 62 [0], given: 0

SVP
SVP
avatar
Joined: 17 Jun 2008
Posts: 1530

Kudos [?]: 282 [0], given: 0

Re: DS [#permalink]

Show Tags

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

Answer is definitely E.

Kudos [?]: 282 [0], given: 0

Director
Director
User avatar
Joined: 24 Aug 2007
Posts: 924

Kudos [?]: 1559 [0], given: 40

WE 1: 3.5 yrs IT
WE 2: 2.5 yrs Retail chain
Re: DS [#permalink]

Show Tags

New post 17 Apr 2010, 10:56
IMO E.

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

Want to improve your CR: http://gmatclub.com/forum/cr-methods-an-approach-to-find-the-best-answers-93146.html
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

Kudos [?]: 1559 [0], given: 40

Re: DS   [#permalink] 17 Apr 2010, 10:56
Display posts from previous: Sort by

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

  new topic post reply Question banks Downloads My Bookmarks Reviews Important topics  


GMAT Club MBA Forum Home| About| Terms and Conditions| GMAT Club Rules| Contact| Sitemap

Powered by phpBB © phpBB Group | Emoji artwork provided by EmojiOne

Kindly note that the GMAT® test is a registered trademark of the Graduate Management Admission Council®, and this site has neither been reviewed nor endorsed by GMAC®.