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

Method: work backward from the definition of dividend rate rather than testing each statement narratively.

1. Dividend rate is always calculated on the face value of a share, not its market price: $\text{rate}\% = \dfrac{\text{total dividend received}}{\text{total face value of holding}} \times 100$.
2. The question already gives the dividend amount as Rs 1500. What is missing is the total face value of Ram's shares.
3. Statement I gives last year's dividend rate (10%), a completely different year's figure with no fixed relationship to this year's Rs 1500 dividend. It cannot supply the current face value or rate, so it is useless here.
4. Statement II gives the number of shares (350) and their face value (Rs 10 each), so total face value $= 350 \times 10 = 3500$ rupees.
5. Plugging into the formula: $\text{rate} = \dfrac{1500}{3500}\times 100 \approx 42.86\%$.

Statement II alone, combined with the dividend amount already stated in the question, gives one exact numeric rate. So the answer is option 2.

\[\boxed{\text{Option 2}}\]