Vidyalelo
Management · Q890

Financial Management

Graduate and Post Graduate · Management · question 890

Q890

An expected final stock price is Rs 70 and an expected capital gain is Rs 25 then an original investment would be

A.
Rs 45.00
Answer
B.
-Rs 45.00
C.
Rs 95.00
D.
-Rs 95.00

Answer: Option A

Solution

Answer: Option A
Solution:
Original investment = Expected final stock price - Expected capital gain
= Rs. 70 - Rs. 25 = Rs. 45.00