Advertisements
Advertisements
Question
A man has some shares of Rs. 100 par value paying 6% dividend. He sells half of these at a discount of 10% and invests the proceeds in 7% Rs. 50 shares at a premium of Rs. 10. This transaction decreases his income from dividends by Rs. 120. Calculate:
(i) the number of shares before the transaction.
(ii) the number of shares he sold.
(iii) his initial annual income from shares.
Solution
Let no. of shares = x
Value of x shares = x × 100 = 100 x
and dividend = `(100x xx 6)/(100)` = Rs. 6x
and dividend on half-shares = `"Rs." (6x)/(2)` = Rs. 3x
Now, no of shares he sold out = `x/(2)`
Amount received at 10% discount
= `x/(2) xx 90` = Rs. 45x
In investing Rs. 45x, no. of share he purchased = `(45x)/(60)`
∴ Amount of shares = `(45x)/(60) xx 50 = "Rs." (225x)/(6)`
Income at the rate of 7% = `(225)/(6)x xx (7)/(100) = (21x)/(8)`
Differece in income = `3x - (21x)/(8) = (3x)/(8)`
According to the condition, `(3x)/(8)` = 120.
⇒ x = `(120 xx 8)/(3)` = 320
(i) ∴ No. of share he hold initially = 320
(ii) No. of share he hold later = `(320)/(2)` = 160
(iii) Amount of income initially
= 320 x 6
= Rs. 1920.
APPEARS IN
RELATED QUESTIONS
A man buys Rs. 50 shares of a company, paying 12% dividend, at a premium of Rs. 10. Find:
- the market value of 320 shares;
- his annual income;
- his profit percent.
A man has 300, Rs. 50 shares of a company paying 20% dividend. Find his net income after paying 3% income tax.
A man buys 400, twenty-rupee shares at a discount of 20% and receives a return of 12% on his money. Calculate:
- the amount invested by him.
- the rate of dividend paid by the company.
A man bought 360, ten-rupee shares of a company, paying 12 percent per annum. He sold the shares when their price rose to Rs. 21 per share and invested the proceeds in five-rupee shares paying 4.5 percent per annum at Rs. 3.50 per share. Find the annual change in his income.
A man invests a certain sum of money in 6% hundred-rupee shares at Rs 12 premium. When the shares fell to Rs 96, he sold out all the shares bought and invested the proceed in 10%, ten-rupee shares at Rs 8. If the change in his income is Rs 540, Find the sum invested originally.
Calculate the percentage income in the following investments:
Rs 36,250 in a Rs 125 share paying 8% and available at a premium of Rs 20.
By investing Rs. 45,000 in 10% Rs. 100 shares, Sharad gets Rs. 3,000 as dividend. Find the market value of each share.
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 percentage return does she get on her investment? Give your answer to the nearest integer.
A man buys Rs. 40 shares of a company which pays 10% dividend. He buys the shares at such a price that his profit is 16% on his investment. At what price did he buy each share?
100, ₹ 100 shares (paying 10% dividend) are bought at a discount of ₹ 20 and another 100, ₹ 100 shares (paying 10% dividend) are bought at ₹ 120. The total dividend earned is ______.
