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:
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:
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:
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:
Selling Value of the share
Amount of money raised
Therefore number of shares sold
Shares left
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
Sale Proceed
Second Investment
Therefore the amount invested
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:
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:
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:
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.
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