Advertisements
Advertisements
Question
Usha sold 350 shares of Rs 150 each paying 6% dividend at Rs 120 and invested the proceeds in Rs 75 shares at par paying 8% dividend. Calculate the number of Rs 75 shares she bought and the change in her annual income.
Solution
In first case:
No. of shares sold = 350
Face value of each share =Rs 150
Face value of 350 shares =Rs ( 150 x 350) =Rs 52,500
Market value of each share = Rs 120
Market value of 350 shares =Rs ( 120 x 350) =Rs 42,000
Dividend (income) for 350 shares = 6 % of Rs 52,500 =
Rs `(6 xx 52500)/100` = Rs 3150
In second case:
Proceeds from selling 350 shares =Rs 42,000
Face value of each share =Rs 75
Market value of each share = Rs 75
No. of shares bought = `42000/75 = 560`
Usha bought 560 shares of Rs 75 each.
Face value of 560 shares =Rs (75 x 560) =Rs 42,000
Dividend (income) for 560 shares = 8 % of Rs 42,000 =
Rs `(8 xx 42000)/100` = Rs 3360
Change in annual income =Rs (3,360 - 3,150) =Rs 210
APPEARS IN
RELATED QUESTIONS
How much money will be required to buy 125, Rs. 30 shares at a discount of Rs. 3?
Rajat buys Rs. 80 shares at 30% premium in a company paying 18% dividend. Find:
(i) The market value of 150 shares.
(ii) Rajat’s annual income from these shares.
(iii) Rajat’s percentage return from this investment.
Anu has 750 shares of Rs 60 each of 'Tata Infotech' paying 15% dividend. Find her net income after paying 6% income tax.
Divya invested Rs 50,000 in buying shares of Rs 125 each of 'Hitech Technologies'. She sold half of them when they were at a premium of 24% and the remaining half when they were at a discount of 20%. Find her gain or loss in the transaction.
Bhavana invested Rs 20,000 and Rs 25,000 in buying shares of 'Bharati Telecom' and 'Satyam Infoways' which later declared dividend of 10% and 12.5% respectively. After collecting the dividends Bhavana sells all her shares at a loss of 4% and 5% respectively on her investments. Find her total earnings.
Which among these is a better investment:
12.5% at 125 or 7.5% at 80
Amitesh had 400 shares of Rs 100 each of 'Telco' paying a dividend of 12.5%. He sold them at a market price of Rs 125 and invested the proceeds in Rs 50 shares of 'Adani Motors' available in the market at Rs 80 and paying a dividend of 16%. How many shares of Adani Motors did Amitesh buy and what is the change in his annual income?
Rohit had 1000 shares of Rs 125 each of 'New Delhi Times' paying a dividend of 12%. He sold all of them at a market rate of Rs 150 and invested the proceeds in buying Rs 25 shares of BVL available at Rs 60 and paying 20% dividend. How many shares of BVL did Rohit buy and what is the change in his annual income?
Which in better investment: 7% Rs. 100 shares at Rs.120 or 8% Rs. 10 shares at Rs. 13.50.
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.
