Question 1: Calculate the money required to buy :

(i) 350, Rs. 20 shares at a premium of Rs. 7

(i) 275, Rs. 60 shares at a discount of Rs. 10

(iii) 50, Rs. 75 shares quoted at Rs. 71.50

Answer:

Question 2: Ravi invested Rs. 6250 in shares of a company paying 6% dividend per annum. If he bought Rs. 25 shares for Rs.31.25 each, find his income from the investment.

Answer:

Question 3: Manoj buys Rs. 100 shares at Rs. 20 premium in a company paying 15% dividend. Find: (i) the market value of 200 shares; (ii) his annual income; (iii) his percentage income.

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Question 4: Rs. 67200 are invested in Rs. 100 shares which are quoted at Rs. 120. Find the income if 12% dividend is declared on the shares. [ ICSE Board 1982]

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Question 5: Find the dividend due at the end of a year on 250 shares of Rs. 50 each, if the half-yearly dividend is 4% of the value of the share. [ ICSE Board 1983]

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Question 6: A man bought 500 shares, each of face value Rs. 10, of a certain business concern and during the first year, after purchase, receives Rs. 400 as dividend on his shares. Find the rate of dividend on the shares. [ ICSE Board 1985]

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Question 7: Mukul invests Rs. 9000 in a company paying a dividend of 6% per annum when a share of face value Rs. 100 stands at Rs. 150. What is his annual income? If he sells 50% of his shares when the price rises to Rs. 200, what is his gain in this transaction? [ ICSE Board 1991]

Answer:

Question 8: A man wants to buy 62 shares available at Rs. 132 ( par value being Rs. 100)

(i) How much he will have to invest ?

(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? [ ICSE Board 2002]

Answer:

Question 9: A company with 4000 shares of nominal value of Rs. 110 each declares an annual dividend of 15%. Calculate:

(i) The total amount of dividend paid by the company

(ii) The annual income of shah Rukh who holds 88 shares in the company’

(iii) If he received only 10% on his investment, find the price Shah Rukh paid for each share [ ICSE Board 2008]

Answer:

Question 10: A man buys a Rs. 40 share in a company, which pays 10% dividend. He buys the share at such a price that his profit is 16% on his investment. At what price did he buy the share ?

Answer:

Question 11: Ajay, owns 560 shares of a company. The face value of each share is Rs. 25. The company declares a dividend of 9%. Calculate :

(i) the dividend that Ajay will get.

(ii) the rate of interest on his investment, if Ajay had paid Rs. 30 for each share

Answer:

Question 12: How much should a man invest in Rs. 50 shares selling at Rs. 60 to obtain an annual income of Rs. 900, if the dividend declared is 15 per cent ?

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Question 13: A dividend of 9% was declared on Rs. 100 share selling at a certain price. If the rate of return is 7.5%, calculate :

(i) the market value of the share;

(ii) the amount to be invested to obtain an annual dividend of Rs. 630. [ ICSE Board 2000]

Answer:

Question 14: Which is a better investment : 12% Rs. 100 shares at 120 or 8% Rs.100 shares at 90?

Answer:

In first case :

In second case :

Since The investment giving greater profit%, will be better.

Therefore the first investment is better.

Question 15: A man sells 60, Rs. 15 shares of a company paying 12 per cent dividend, at Rs. 21 each and invests the proceeds in Rs. 6 shares of another company at Rs. 9 each. Find his change in income, if the second company pays a dividend of 8 per cent.

Answer:

Question 16: Mr. Ram Gopal invested Rs. 8000 in 7% Rs. 100 shares at Rs. 80. After a year he sold these shares at Rs. 75 each and invested the proceeds (including his dividend) in 18%, Rs. 25 shares at Rs. 41. Find :

(i) his dividend for the first Year

(ii) his annual income in the second year

(iii) the percentage increase in his return on his original investment [ ICSE Board 2006]

Answer:

Question 17: Ashok and Sandeep invest Rs. 18000 each in buying shares of two different companies. Ashok buys 7.5% Rs. 100 shares at a discount of 20% ,whereas Sandeep buys Rs. 50 shares at a premium of 20%. If both receive equal dividend at the end of the year, find the rate of dividend received by Sandeep

Answer:

For Ashok

For Sandeep

Now, we have two methods of finding the rate of dividend.

It is given that Ashok and Sandeep receive equal dividend

Therefore Total dividend received by Sandeep = Total dividend received by Ashok

Question 18: John had 1000 shares of a company with a face value of Rs. 40 and paying 8% dividend. He sold some of these shares at a discount of 10% and invested the proceeds in Rs. 20 shares at a premium of 50% and paying 12% dividend. If the change in his income is Rs.192, find the number of shares sold by John.

Answer:

ln the first case :

In second case :

Question 19: Divide Rs. 40608 into two parts such that if one part is invested in 8% Rs. 100 shares at 8% discount and the other part is invested in 9% Rs. 100 shares at 8% premium, the annual incomes, from both the investment, are equal

Answer:

For 1st part :

For 2nd part:

Given, that dividends (incomes) from both the investments are equal

On solving, we get :

Question 20: A man has choice to invest in hundred-rupee shares of two companies A and B. Shares of company A are available at a premium of 20% and it pays 8% dividend whereas shares of company B are available at a discount of 10% and it pays 7% dividend. If the man invests equally in both the companies and the sum of the return from them is Rs. 936, find how much, in all, does he invest?

Answer:

For company A :

For company B :