What Is The Total Value Of Company H's Stock? GMAT Data Sufficiency

Question: What is the total value of Company H's stock?

      (1) Investor P owns 1/4 of the shares of company H's total stock

      (2) The total value of Investor Q's shares of Company H's stock is $16,000

1. Statement (1) ALONE is sufficient, but statement (2) alone is not sufficient.
2. Statement (2) ALONE is sufficient, but statement (1) alone is not sufficient.
3. BOTH statement TOGETHER are sufficient, but NEITHER statement ALONE is sufficient.
4. EACH statement ALONE is sufficient.
5. Statements (1) and (2) TOGETHER are NOT sufficient.

“What is the total value of Company H's stock?”- is a topic of the GMAT Quantitative reasoning section of GMAT. This question has been taken from the book "GMAT Quantitative Review". GMAT Quant section consists of a total of 31 questions. GMAT Data Sufficiency questions consist of a problem statement followed by two factual statements. GMAT data sufficiency comprises 15 questions which are two-fifths of the total 31 GMAT quant questions.

Solution and Explanation:

Approach Solution:

There is only 1 approach to answering the question

In this question prompt, there is a serious lack of information. Considering that it has been asked for the total value of Company H's stock, there is not enough information given. Hence, based on a lack of information, it is necessary to find the value of Company H’s stock and identify if the data is sufficient.

Based on both the statements given, it is essential to evaluate if any of them are sufficient or not.

The first statement evaluates that Investor P owns 1/4 of the shares.

In this statement there is practically nothing about the value of those shares, nor does it state how many people own the 3/4 of the shares that are remaining for the company. Hence, there is no way to determine the total value of the stock for Company H.

Accordingly, the data provided for the prompt in the first statement is insufficient.

The second statement for the prompt mentions that the value of Investor Q's shares of Company H's stock is $16,000.

While there are minute data present about the total shares that are invested or owned by Investor Q, it is not enough to determine the total stocks for Company H, which would determine its value. Therefore, this makes the data provided in the second statement insufficient.

Combining both the aspects of the given two statements, it can be evaluated that-

Investor P owns 1/4 of the shares of the company H while on the other hand, Investor Q owns a fraction of the shares which are unknown, but have been valued at $16,000

It is not known whether Investor Q owns 3/4 of the shares or less than 3/4 of the shares of Company H while the possibility of the presence of other investors is also high. Accordingly, it can be considered that there is no way to use the value of the shares that can be evaluated to be held by Company H that can be used to determine the value of its stocks.

Therefore, by combining both statements for the given scenario, the data provided is insufficient in both cases.

Correct Answer: E

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