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

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?

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.

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.

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.

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.

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.

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

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.

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;

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.

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.

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]

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]

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.100 shares?    [1990]

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 $= 100+50 = 150 \ Rs.$

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