Question

Ram got Rs 1500 as dividend from a company. What is the rate of interest given by the company?
(I) The dividend paid last year was 10%.
(II) Ram has 350 shares of Rs 10 denomination.

• A. Statement I alone is sufficient to answer the question.
• B. Statement II alone is sufficient to answer the question.
• C. Both statement I and II together are necessary to answer the question.
• D. Both statements I and II together are not sufficient to answer the question.

Hint:

Dividend rate = dividend amount / total face value of shares x 100.

Answer 1

The Correct Option is B

Step 1: Understand what determines the dividend rate.
The rate of dividend paid on a share is calculated as: (dividend amount received) / (total face value of shares held) x 100. To find the rate we need the dividend amount, already given as Rs 1500, and the total face value of Ram's shareholding.
Step 2: Check statement I alone.
Statement I tells us last year's dividend rate was 10%. This is a rate from a previous year, and there is no reason the company repeats the same rate this year. It also doesn't tell us how many shares Ram holds or their face value, so it cannot give the current rate for the Rs 1500 dividend. Statement I alone is not sufficient.
Step 3: Check statement II alone.
Statement II tells us Ram holds 350 shares of face value Rs 10 each. Total face value = 350 x 10 = Rs 3500. Now the dividend rate = (dividend amount / total face value) x 100 = (1500 / 3500) x 100 = 42.86%. This gives a complete, unique answer using only statement II, combined with the Rs 1500 dividend already stated in the question. Statement II alone is sufficient.
Step 4: Conclude.
Statement II alone lets us compute the exact dividend rate (about 42.86%), while statement I alone gives only an irrelevant past-year figure. So the answer is option 2: statement II alone is sufficient.