Question 1: How much money will be required to buy 200, Rs. 25 shares at a premium of Rs. 2?

Answer:

Market price of the share = 25+2 = 27 \ Rs. .

Therefore the money required to buy 200 shares = 200 \times 27 = 5400 \ Rs. .

\\

Question 2: How much money will be required to buy 125, Rs. 30 shares at a discount of Rs. 3?

Answer:

Market price of the share = 30-3 = 27 \ Rs. .

Therefore the money required to buy 125 shares = 125 \times 27 = 3429 \ Rs. .

\\

Question 3: A person buys 120 shares at a nominal value of Rs. 40 each, which he sells at Rs. 42.50 each. Find his profit and profit per cent.

Answer:

Profit per share = 42.50-40 = 2.5 \ Rs. 

Total investment = 120 \times 40= 4800 \ Rs.

Total profit = 120 \times 2.5= 300 \ Rs.

Profit % = \frac{300}{4800} \times 100 = 6\% 

\\

Question 4: Find the cost of 85 shares of Rs. 60 each when quoted at Rs. 63.25.

Answer:

Total cost of 85 shares = 85 \times 63.25 = 5376 \  Rs.

\\

Question 5: A man invests Rs. 800 in buying Rs. 5 shares and when they are selling at a premium of Rs. 1.15, he sells all the shares, Find his profit and profit per cent.

Answer:

Number of shares bought \frac{800}{5} = 160 

Profit per share =6.15-5 = 1.15 \ Rs. 

Total investment = 800 \ Rs.

Total profit = 160 \times 1.15= 184 \ Rs.

Profit % = \frac{184}{800} \times 100 = 23\% 

\\

Question 6: Find the annual income derived from 250, Rs. 60 shares paying 5% dividend.

Answer:

Dividend per share = 60 \times \frac{5}{100} = 12 \ Rs. 

Total income = 250 \times 12 = 3000 \ Rs. 

\\

Question 7: A man invests Rs. 3,072 in a company paying 5% per annum, when its Rs. 10 share can be bought for Rs. 16 each. Find: i) His annual Income;  ii) His Percentage income on his investment.

Answer:

Market price of the share 16 \ Rs. 

Total number of shares bought = \frac{3072}{16} =  192 

Dividend = 192 \times 10 \times \frac{5}{100} = 96 \ Rs. 

Therefore annual income = 96 \ Rs. 

% income on his investment = \frac{96}{3072} \times 100 = 3.125\% 

\\

Question 8: A man invests Rs. 7770 in a company paying 5 per cent divided when a share of nominal value of Rs. 100 sells at a premium of Rs. 5 Find; i) The number of shares bought ii) Percentage income iii) Annual Income

Answer:

Nominal price of the share 100 \ Rs. .

Cost price of the share = 105 \ Rs. .

Number of shares bought = \frac{7770}{105} = 74 

Income = 74 \times 100 \times \frac{5}{100} = 370 

Percentage income = \frac{370}{7770} \times 100 = 4.76\% 

\\

Question 9: A man buys Rs. 50 shares of a company, paying 12 per cent dividend, at a premium of Rs. 10. Find; i) The market value of 320 shares;  ii) His annual income iii) His profit percent.

Answer:

Nominal price of the share 50 \ Rs. .

Cost price of the share = 60 \ Rs. .

Market value of 320 shares = 320 \times 60 = 19200 \ Rs. .

Annual Income = 320 \times 50 \times \frac{12}{100} = 1920 \ Rs. .

Profit % = \frac{1920}{19200} \times 100 = 10\%

\\

Question 10: A man buys Rs. 75 shares at a discount of Rs. 15 of a company paying 20% dividend find; i) The market value of 120 shares; ii) His annual income; ii) His profit Percent;

Answer:

Nominal price of the share 75 \ Rs. .

Cost price of the share = 75-15= 60  \ Rs. .

Market value of 120 shares = 120 \times 60 = 7200 \ Rs. .

Annual Income = 120 \times 75 \times \frac{20}{100} = 1800 \ Rs. .

Profit % = \frac{1800}{7200} \times 100 = 25 \%

\\

Question 11: A man has 300, Rs. 50 shares of a company paying 20%dividend. Find his net income after paying 3% income tax.

Answer:

Annual Income = 300 \times 50 \times \frac{20}{100} = 3000 \ Rs. .

Taxes paid = \frac{3}{100} \times 3000 = 90 \ Rs. .

Net Income = 3000 - 90 = 2910 \ Rs. .

\\

Question 12: A company pays a dividend of 15% on its 10 Rs. Shares from which it deducts income tax at the rate of 22%. Find the annual income of a man who owns one thousand shares of this company.

Answer:

Annual Income = 1000 \times 10 \times \frac{15}{100} = 1500 \ Rs. .

Taxes paid = \frac{22}{100} \times 1500 = 330 \ Rs. .

Net Income = 1500-330 = 1170 \ Rs. .

\\

Question 13: A man invests Rs. 8,800 in buying shares of a company of face value of Rs. 100 each at a premium of 10%. If he ears Rs. 1,200 at the end of the year as dividend. Find; i) The number of shares he has in the company. ii) The dividend percent per share.   [2001]

Answer:

Nominal price of the share 100 \ Rs. .

Cost price of the share = 100 +10 = 110  \ Rs. .

Number of shares bought =\frac{8800}{110} = 80 

Dividend earned = 1200 \ Rs. 

Let the dividend % = x . Therefore

 80 \times 100 \times \frac{x}{100} = 1200 \Rightarrow x = 15\% 

\\

Question 14: A man invests Rs. 1680 in buying shares of nominal value Rs. 24 and selling at 12% premium. The dividend on the shares is 15% per annum. Calculate: i) The number of shares he buys; ii) The dividend he receives.    [1999]

Answer:

Nominal price of the share 24 \ Rs. .

Selling price of the share = 24 +24 \times \frac{12}{100} = 26.88  \ Rs. .

Number of shares bought = \frac{1680}{26.88} = 62.5 

Dividend received = 62.5 \times 24 \times \frac{15}{100} = 225 \ Rs. .

\\

Question 15: By investing Rs. 7500 in a company paying 10% dividend, an annual income of Rs. 500 is received. What price is paid for each of Rs.100 shares?    [1990]

Answer:

Let the premium = x \ Rs. 

Market price = (100+x) \ Rs. 

Therefore

 \frac{7500}{(100+x)} \times 100 \times {10}{100} = 500 

 750 = 500+5x 

 x = 50 

Hence the price paid for each share = 100+50 = 150 \ Rs. 

\\

Advertisements