Question 1: 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 .
Cost price of the share .
Number of shares bought
Dividend earned
Let the dividend % . Therefore
Question 2: 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 .
Selling price of the share
.
Number of shares bought
Dividend received
.
Question 3: 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
Market price
Therefore
Hence the price paid for each share
Question 4: A man invests Rs. 20,020 in buying shares of N.V. Rs. 26 at 10% premium. The dividend on the shares is 15% per annum. Calculate: i) The number of shares he buys; ii) The dividend he receives annually; iii) The rate of interest he gets on his money. [2012]
Answer:
Number of shares
Dividend
% rate of interest he gets
Question 5: A man invested Rs. 45,000 in 15% Rs.100 shares quoted at Rs. 125, when the M.V. of these shares rose to Rs. 140, he sold some shares, just enough to raise Rs. 8400. calculate: i) The number of shares he still holds; ii) The dividend due to him on these remaining shares. [2004]
Answer:
Nominal Value of the share
Market Value of the share
Number of shares bought
Selling Value of the share
Amount of money raised
Therefore number of shares sold
Shares left
Dividend earned on remaining shares
Question 6: Vivek invests Rs. 4,500 in 8%, Rs.10 shares at Rs. 15. He sells the shares when the price rises to Rs. 30, and invests the proceeds in 12% Rs. 100 shares at Rs. 125. Calculate; i) The sale proceeds ii) The number of Rs. 125 shares he buys; iii) The change in his annual income from dividend. [2010]
Answer:
First Investment
Let the amount invested
Nominal Value of the share
Market Value of the share
Dividend earned
Number of shares bought
Sale Proceed
Dividend earned
Second Investment
Therefore the amount invested
Nominal Value of the share
Market Value of the share
Dividend earned
Number of shares bought
Dividend earned
Hence the change in income
Question 7: Mr. Parekh invested Rs. 52,000 on Rs. 100 shares at a discount of Rs. 20 paying 8% dividend. At the end of one year he sells the shares at a premium of Rs. 20; find: i) The annual dividend; ii) The profit earned including his dividend. [2011]
Answer:
Nominal Value of the share
Market Value of the share
Number of shares bought
Dividend earned
Sale proceeds
Profit
Question 8: Salman buys 50 shares of face value Rs. 100 available at Rs. 132. i) What is his investment? ii) If the dividend is 7.5%, what will be his annual income? iii) If he wants to increase his annual income by Rs. 150, how many extra shares should he buy? [2013]
Answer:
Nominal Value of the share
Market Value of the share
Number of shares bought
Investment
Dividend earned
Dividend earned on 1 share
Therefore to earn 150 Rs. more, one needs to buy
shares.
Question 9: Salman invests a sum of money in Rs. 50 shares, paying 15% dividend quoted at 20% premium. If his annual dividend is Rs. 600, Calculate; i) The number of shares he bought; ii) His total investment; ii) The rate of return on his investment. [2004]
Answer:
Nominal Value of the share
Market Value of the share
Dividend earned
Dividend earned on 1 share
Number of shares bought
Investment
Question 6 has been answered incorrectly. When you were finding the second income, you calculated it wrong. It should be Rs. 864 and not Rs. 720.
LikeLike
Thank you for point the error. I have corrected it. Appreciate you pointing it out. Feel free to send us your feedback on the site as well.
LikeLike