Class 10: Shares and Dividend – Exercise 5(a) – ICSE / ISC / CBSE Mathematics Portal for K12 Students

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 $= 200 \times 27 = 5400 \ Rs.$ .

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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 $= 125 \times 27 = 3429 \ Rs.$ .

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

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

Answer:

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

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

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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 $= 250 \times 12 = 3000 \ Rs.$

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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 $=$ $\frac{96}{3072}$ $\times 100 = 3.125\%$

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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 $=$ $\frac{370}{7770}$ $\times 100 = 4.76\%$

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

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

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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 $= 3000 - 90 = 2910 \ Rs.$ .

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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 $= 1500-330 = 1170 \ Rs.$ .

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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

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

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

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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.$latex 100 shares? [1990]