Chapter 3 - Shares and Dividends Exercise Ex. 3(C)

Question 1

By investing Rs.45,000 in 10% Rs.100 shares, Sharad gets Rs.3,000 as dividend. Find the market value of each share.

Solution 1

Question 2

Mrs. Kulkarni invests Rs.1, 31,040 in buying Rs.100 shares at a discount of 9%. She sells shares worth Rs.72,000 at a premium of 10% and the rest at a discount of 5%. Find her total gain or loss on the whole.  

Solution 2

Question 3

A man invests a certain sum on buying 15% Rs.100 shares at 20% premium. Find :

(i) His income from one share

(ii) The number of shares bought to have an income, from the dividend, Rs.6480

(iii) Sum invested

Solution 3

Question 4

Gagan invested Rs.80% of his savings in 10% Rs.100 shares at 20% premium and the rest of his savings in 20% Rs.50 shares at Rs.20% discount. If his incomes from these shares is Rs.5,600 calculate:

(i) His investment in shares on the whole

(ii) The number of shares of first kind that he bought

(iii) Percentage return, on the shares bought on the whole.

Solution 4

Question 5

Ashwarya bought 496, Rs.100 shares at Rs.132 each, find :

(i) Investment made by her

(ii) Income of Ashwarya from these shares, if the rate of dividend is 7.5%.

(iii) How much extra must ashwarya invest in order to increase her income by Rs.7,200

Solution 5

Question 6

Gopal has some Rs.100 shares of company A, paying 10% dividend. He sells a certain number of these shares at a discount of 20% and invests the proceeds in Rs.100 shares at Rs.60 of company B paying 20% dividend. If his income, from the shares sold, increases by Rs.18,000, find the number of shares sold by Gopal.

Solution 6

Question 7

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

Solution 7

Question 8

Mr. Gupta has a choice to invest in ten-rupee shares of two firms at Rs13 or at Rs16. If the first firm pays 5% dividend and the second firm pays 6% dividend per annum, find:

(i)which firm is paying better.

(ii)if Mr. Gupta invests equally in both the firms and the difference between the returns from them is Rs30, find how much, in all, does he invest.

Solution 8

(i)

1^st firm

Nominal value of 1 share= Rs10

Market value of 1 share= Rs13

Dividend%= 5%

Dividend = 5% of Rs10= Rs0.50

2^nd firm

Nominal value of 1 share= Rs10

Market value of 1 share= Rs16

Dividend%= 6%

Dividend = 6% of Rs10= Rs0.60

Then first firm is paying better than second firm.

(ii)

Let money invested in each firm= Rs y

For 1^st firm

Total dividend 

For 2^nd firm

Total dividend 

Given- difference of both dividend= Rs30

Total money invested in both firms= Rs31,200  2

= Rs62,400.

Question 9

Ashok invested Rs.26,400 in 12%, Rs.25 shares of a company. If he receives a dividend of Rs.2,475, find the:

(i) number of shares he bought.

(ii) market value of each share. 

Solution 9

(i) Total dividend = Rs. 2,475

 

 

(ii) Market value of 825 shares = Rs. 26,400

 

 

Question 10

A man invested Rs45,000 in 15% Rs100shares quoted at Rs125. When the market value of these shares rose to Rs140, he sold some shares, just enough to raise Rs8,400. Calculate:

(i)the number of shares he still holds;

(ii)the dividend due to him on these remaining shares.

Solution 10

(i)

Total investment= Rs45,000

Market value of 1 share= Rs125

Nominal value of 360 shares= Rs100 x 360= Rs36,000

Let no. of shares sold= n

Then sale price of 1 share= Rs140

Total sale price of n shares= Rs8,400

Then 

The no. of shares he still holds= 360 - 60= 300

(ii)

Nominal value of 300 shares= Rs100  300= Rs30,000

Dividend%= 15%

Dividend = 15% of Rs30,000

Question 11

Mr.Tiwari. invested Rs29,040 in 15% Rs100 shares quoted at a premium of 20%. Calculate:

(i)the number of shares bought by Mr. Tiwari.

(ii)Mr. Tiwari's income from the investment.

(iii)the percentage return on his investment.

Solution 11

Total investment= Rs29,040

Nominal value of 1 share= Rs100

Market value of 1 share= Rs100+ 20% of Rs100

= Rs100 + Rs20=Rs120

Nominal value of 242 shares= Rs100 x 242= Rs24,200

Dividend%= 15%

Dividend= 15% of Rs24,200

Question 12

A dividend of 12% was declared on Rs150 shares selling at a certain price. If the rate of return is 10%, calculate:

(i)the market value of the shares.

(ii)the amount to be invested to obtain an annual dividend of Rs1,350.

Solution 12

(i)Nominal value of 1 share= Rs150

Dividend%= 12%

Dividend on I share= 12% of Rs150

Let market value of 1 share= Rs y

Return%= 10%

(ii)when dividend is Rs18, then investment is Rs180

When dividend is Rs1,350, then investment

=Rs 13, 500

Question 13

Divide Rs50,760 into two parts such that if one part is invested in 8% Rs100 shares at 8% discount and the other in 9% Rs100 shares at 8% premium, the annual incomes from both the investments are equal.

Solution 13

Total investment= Rs50,760

Let 1^st part= Rs y

2^nd part= Rs(50,760-y)

For 1^st part

Nominal value of 1 share= Rs100

Market value of 1 share= Rs100 - 8% of Rs100

= Rs100 - Rs8= Rs92

Dividend%= 8%

Dividend on 1 share= 8% of Rs100= Rs8

Total dividend

For 2^nd part

Nominal value of 1 share= Rs100

Market value of 1 share= Rs100 + 8% of Rs100

= Rs100 + Rs8= Rs108

Dividend%= 9%

Dividend on 1 share= 9% of Rs100= Rs9

Total dividend

Given that both dividend are equal

Then 

1^st part= Rs24,840

2^nd part= Rs50760 - Rs24,840= Rs25,920.

Question 14

Mr. Shameem invested  of his savings in 20% Rs50 shares quoted at Rs60 and the remainder of the savings in 10% Rs100 share quoted at Rs110. If his total income from these investments is Rs9,200; find :

(i)his total savings (ii)the number of Rs50 share

(iii)the number of Rs100 share.

Solution 14

Let his total savings is Rs y

1^st case

His saving=  of y = Rs

Market price of 1 share= Rs60

Then shares purchased=

Dividend on 1share= 20% of Rs50= Rs10

Total dividend= 

2^nd case

His saving= of y= Rs

Market price of 1share= Rs110

Then shares purchased =

Dividend on 1share= 10% of Rs100= Rs10

Total dividend= 

According to question

Total income = Rs9,200

The number of Rs50share= 

The number of Rs100 share= 

Question 15

Vivek invests Rs4,500 in 8%, Rs10 shares at Rs15. He sells the shares when the price rises to Rs30, and invests the proceeds in 12% Rs100 shares at Rs125. Calculate :

(i)the sale proceeds

(ii)the number of Rs125 shares he buys.

(iii)the change in his annual income from dividend.

Solution 15

1^st case

Total investment= Rs4,500

Market value of 1 share= Rs15

Nominal value of 1 share= Rs10

Nominal value of 300 shares= Rs10  300= Rs3,000

Dividend=8% of Rs3,000

Sale price of 1 share= Rs30

Total sale price= Rs30 x 300= Rs9,000 Ans.

(ii)new market price of 1 share= Rs125

 

(iii)

New nominal value of 1 share= Rs100

New nominal value of 72 shares= Rs100 x 72= Rs7,200

Dividend%= 12%

New dividend= 12% of Rs7,200

Change in annual income= Rs864 - Rs240

= Rs624

Question 16

Mr.Parekh invested Rs.52,000 on Rs.100 shares at a discount of Rs.20 paying 8% dividend. At the end of one year he sells the shares at a premium of Rs.20. Find:

(i)The annual dividend

(ii)The profit earned including his dividend.

Solution 16

Rate of dividend = 8%

Investment = Rs.52000

Market Rate = Rs.100 - 20 = Rs.80

No. of shares purchased = 

(i) Annual dividend = 650 × 8 = Rs.5200 Ans.

(ii) On selling, market rate = Rs.100+20 = Rs.120

Sale price = 650 × 120 = Rs.78000

Profit = Rs.78000 - Rs.52000 = Rs.26000

Total gain = 26000 + 5200 = Rs.31200 

Question 17

Salman buys 50 shares of face value Rs.100 available at Rs.132.

(i) What is his investment?

(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?

Solution 17

Question 18

Salman invests a sum of money in Rs.50 shares, paying 15% dividend quoted at 20% premium. If his annual dividend is Rs.600, calculate :

(i) The number of shares he bought.

(ii) His total investment.

(iii) The rate of return on his investment.

Solution 18

Question 19

Rohit invested Rs. 9,600 on Rs. 100 shares at Rs. 20 premium paying 8% dividend. Rohit sold the shares when the price rose to Rs. 160. He invested the proceeds (excluding dividend) in 10% Rs. 50 shares at Rs. 40. Find the :

(i) Original number of shares.

(ii) Sale proceeds.

(iii) New number of shares.

(iv) Change in the two dividends.

Solution 19

Question 20

How much should a man invest in Rs. 50 shares selling at Rs. 60 to obtain an income of Rs. 450, if the rate of dividend declared is 10%. Also find his yield percent, to the nearest whole number. 

Solution 20

Face value of each share = Rs. 50

Dividend(%)=10%

Dividend on 1 share = 

∴Number of shares bought =