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Commerce · Q877

Financial Management

Graduate and Post Graduate · Commerce · question 877

Q877

An original investment is Rs 30 and an expected capital gain is Rs 10 then an expected final stock price will be

A.
Rs 20.00
B.
Rs 40.00
Answer
C.
-Rs 40.00
D.
-Rs 20.00

Answer: Option B

Solution

Answer: Option B
Solution:
Final stock price = Original investment + Expected capital gain
= Rs. 30 + Rs. 10 = Rs. 40.00