V02-08

Question

The company is in bankruptcy and has no dividends to pay; however, if the merger with the larger company is successful, shareholders could receive  from 10 cents on the dollar up to 40 cents on the dollar  for their stock.

A. from 10 cents on the dollar up to 40 cents on the dollar
B. from 10 cents of the dollar to 40 cents of the dollar
C. from 10 cents on the dollar and 40 cents on the dollar
D. from 10 to 40 cents of the dollar
E. from 10 to 40 cents on the dollar

Bunuel · Accepted Answer

Official Solution:

The company is in bankruptcy and has no dividends to pay; however, if the merger with the larger company is successful, shareholders could receive  from 10 cents on the dollar up to 40 cents on the dollar  for their stock.

A. from 10 cents on the dollar up to 40 cents on the dollar
B. from 10 cents of the dollar to 40 cents of the dollar
C. from 10 cents on the dollar and 40 cents on the dollar
D. from 10 to 40 cents of the dollar
E. from 10 to 40 cents on the dollar

Choice A :  The phrase  from...up to  is incorrect. 
   Choice B :  The phrase  of the dollar  is incorrect. 
   Choice C :  The phrase  from...and  is incorrect. 
   Choice D :  The phrase  of the dollar  is incorrect. 
    Choice E :   From...to  is the correct use of a phrase indicating range.  On the dollar  is the correct use of a phrase to indicate a portion of currency. The sentence is also more concise than the original.

Answer: E

redfield · Answer

I get this is a pretty clear cut problem and answer but I'm wondering in D and E, is there not an issue saying "10 to 40 cents"? I would would think there is slight ambiguity with 10 as in 10 what? 10 cents. Is this a grammar rule I am missing for this? It's still the top answer but i'm curious if that is in fact an issue or not so this is the lesser of two evils but still not a great answer.

rananava · Answer

Same question as above

sayantanc2k · Answer

Both the following are correct:
From (10 cents) to (40 cents).
From (10) to (40) cents.

If you consider that "cents" is within the parallel structure  from X to Y , then it should be used twice, once in X and once in Y. If it is considered outside, then it should be used once - in that case it  covers  both.

NAvinash · Answer

GMATNinja  ,  sayantanc2k

Bunuel  :

If the meaning is 10 to 40 cent portion of dollar then use of 'of' is more correct than 'on'. If stakeholders will get 10 to 40 cents of a dollar   on each 1 dollar of share   or will get 10 to 40 cent of a dollar i.e. 10 to 40 cent out of a dollar ? I think both option D and E make sense so meaning of the sentence is more imp here.

WiziusCareers1 · Answer

HI,
PLEASE SUGGEST THE MAIN ERROR IN OPTION A. "from 10 cents on the dollar up to 40 cents on the dollar" 
EXCEPT FROM BEING WORDY, IS THEIR ANYTHING ELSE WRONG HERE?
THANKS
AKU

priyanshu14 · Answer

Dear  GMATNinja   bb   Bunuel   VeritasKarishma   egmat ,
Even I have above query. Please help

Thanks in advance

KarishmaB · Answer

To say that an investor will receive 10 cents for every dollar he invested, we need to say "10 cents on the dollar". 
10 cents of the dollar is not correct usage in this case. 
I am not sure what "10 cents of the dollar" could mean. Perhaps specifying the currency i.e. the cents are of dollar, not say, euro.

Kushchokhani · Answer

I think this is a  high-quality  question and I don't agree with the explanation. Choice E states that "On the dollar is the correct use of a phrase to indicate a portion of currency." IMO to indicate a portion of currency, "of the dollar" is correct usage as mentioned by Karishma. However, in this case, the meaning dictates that we are determining return ON investment, hence 10 to 40 cents (return) ON the dollar (investment)

BottomJee · Answer

I think this is a  high-quality  question and I agree with explanation.

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