Question 1: A man buys 75, Rs. 100 shares paying 9% dividend. He buys shares at such a price that he gets 12% of his money. At what price did he buy the shares?

Answer:

Nominal Price of the share

Let the Market Price of the share

Dividend earned

Therefore

Therefore the market price of the share

Question 2: By purchasing Rs. 25 gas shares for Rs. 40 each, a man gets 4 percent profit on his investment. What rate per cent is the company paying? What is his dividend if he buys 60 shares?

Answer:

Nominal Price of the share

Market Price of the share

Number of Shares bought

Let the % dividend

Therefore

Question 3: 100 Rs. shares of a company are available in the market at a premium of Rs. 20. Find the rate of dividend given by the company, when a man’s return on his investment is 15%.

Answer:

Nominal Price of the share

Market Price of the share

Let the % dividend

Let us say that the person bought 100 shares.

Therefore

Question 4: 50 shares of a company are quoted at a discount of 10%. Find the rate of dividend given by the company, the return on the investment on these shares being 20%.

Answer:

Let Nominal Price of the share

Therefore Market Price of the share

Number of Shares bought

Let the % dividend

Therefore

Question 5: A company declares 8 per cent dividend to the shareholders. If a man receives Rs. 2840 as his dividend, find the nominal value of his shares.

Answer:

Let the nominal Value of the shares

Therefore

Question 6: How much should a man invest in Rs. 100 shares selling at Rs. 110 to obtain an annual income of Rs. 1680, if the dividend declared is 12%?

Answer:

Nominal Price of the share

Market Price of the share

Let the number of Shares bought

Therefore

Hence the investment

Question 7: A company declares a dividend of 11.2% to all its share holders. If its Rs. 60 share is available in the market at a premium of 25%, how much should a person invest, in buying the shares of this company, in order to have an annual income of Rs. 1680?

Answer:

Nominal Price of the share

Market Price of the share

Let the number of Shares bought

Therefore

Hence the investment

Question 8: A man buys 400, 20 Rs. shares at a premium of Rs. 4 each and receives a dividend of 12%. Find: i) The amount invested by him; ii) His total income from the shares. iii) Percentage return on his money;

Answer:

Nominal Price of the share

Market Price of the share

The number of Shares bought

Amount invested

Income from the shares

% return on his money

Question 9: A man buys 400, 20 Rs. shares at a discount of 20% and receives a return of 12% on his money. Calculate: i) The amount invested by him; ii) The rate of dividend paid by the company.

Answer:

Nominal Price of the share

Market Price of the share

The number of Shares bought

Amount invested

Return on investment

Let the rate of dividend

Therefore

Question 10: A company, with 10,000 shares of Rs. 100 each, declares an annual dividend of 5%. i) What is the total amount of dividend paid by the company? ii) What should be the annual income of a man who has 72 shares in the company? iii) If he received only 4% of his investment, find the price he paid for each share.

Answer:

Annual Dividend

Annual income of the man

Let the price of the share he bought was

Therefore the investment

Hence

Question 11: A lady holds 1800, Rs. 100 shares of a company that pays 15% dividend annually. Calculate her annual dividend. If she had bought these shares at 40% premium, what is the return she gets as percent on her investment, Give your answer to the nearest integer.

Answer:

Annual dividend

Investment

% return

Question 12: man invests Rs. 11200 in a company paying 6% per annum when its Rs. 100 shares can be bought for Rs. 140. Find; i) His annual dividend ii) His % return on his investment

Answer:

Number of shares bought

Annual dividend

Percentage return

Question 13: A person has 60 shares of Nominal Value Rs. 100 and sells them when they are at a premium of 60% he invests the proceeds in shares of nominal value Rs. 50, quoted at 4% discount, and paying 18% dividend annually. Calculate; i) The sale proceeds; ii) The number of shares he buys and iii) His annual dividend from the shares.

Answer:

Initial Investment

Sale Proceeds

New Investment is at Rs. 48 per share

Number of shares bought

Annual dividend

Question 14: A company with 10,000 shares of nominal value Rs. 100 declares an annual dividend of 8% to the shareholders. i) Calculate the total amount of dividend paid by the by the company ii) A man had bought 90 shares of the company at Rs. 150 per share. Calculate the dividend he receives and the percentage of the return on his investment.

Answer:

Total dividend paid

The dividend man will receive

% return on his investment

Question 15: Which is the better investment: 16% Rs. 100 shares at 80 or 20% Rs. 100 shares at 120?

Answer:

First Investment

Dividend on 16% Rs. 100 shares at 80

Investment

% return

Second Investment

Dividend on 20% Rs. 100 shares at 100

Investment

% return

Hence the first investment is better.

Question 16: A man has a choice to invest in 200 Rs. shares of two firms at Rs. 120 or at 132. The first firm pays a dividend of 5% per annum and the second firm pays a dividend of 6% per annum, Find: i) Which company is giving a better return. ii) If a man invests Rs. 26,400 with each firm, how much will be the difference between the annual return from the two firms.

Answer:

First Company

Dividend earned

Investment

% return

Return on investment of Rs. 26400

Second Company

Dividend earned

Investment

% return

Return on investment of Rs. 26400

Therefore the Second company gives a better return.

Difference between the annual return = 200 Rs.

Question 17: A man bought 360, 10 Rs. shares of a company, paying 12% per annum. He sold the shares when their price rose to Rs. 21 per shares and invested the proceeds in 5 rupees shares paying 4.5% per annum at Rs. 3.50 per share. Find the annual change in his income.

Answer:

First Investment

Dividend income

Second Investment

Dividend income

Hence difference in income

Question 18: A man sold 400 (Rs. 20) shares of a company, paying 5% at Rs.18 and invested the proceeds in (Rs. 10) shares of another company paying 7% at Rs. 12. How many Rs.10 shares did he buy and What was the change in his income?

Answer:

Income from first investment

No of Rs. 10 shares bought

Dividend income

Hence the difference

Question 19: Two brothers A and B invests Rs. 16,000 each in buying shares of two companies. A buys 3% 100 Rs. shares at 80 and B buys 10 Rs. shares at par. If they both receive equal dividend at the end of the year, find the rate percent of the dividend received by B.

Answer:

Brother A

Dividend

Brother B

Dividend = 600 Rs.

Question 20: 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 21: A person invested Rs. 19,200 in 15% Rs. 100 shares at 20% discount. After a year She sold these shares at Rs. 90 each and invested the proceeds (including her dividend) in 20%, Rs. 50 shares at Rs. 42. Find: i) The number of shares he buys. ii) The dividend he receives annually; iii) The rate of interest he gets on his money.

Answer:

First Investment

Nominal Price of the share

Market Price of the share

Number of shares

Dividend Income

Rate of interest

Second Investment

Nominal Price of the share $latex

Market Price of the share $latex

Number of shares

Dividend Income

Rate of interest

Question 22: A person invested Rs. 19,200 in 15% Rs. 100 shares at 20% premium. After a year She sold these shares at Rs. 140 each and invested the proceeds (including her dividend) in 20%, Rs. 20 shares at Rs. 16. Find: i) dividend for the first year ii) annual income in the second year, iii) % change in the return on her original investment.

Answer:

First Investment

Nominal Price of the share

Market Price of the share

Number of shares

Dividend Income

Rate of interest

Second Investment

Nominal Price of the share $latex

Market Price of the share $latex

Number of shares

Dividend Income

Rate of interest