Stocks and Shares


  1. Find the income derived form 44 shares of Rs. 25 each at 5 premium (brokerage 1/4 per share ), the rate of dividend being 5%. Also find the rate of interest in the investment ?
    1. Rs. 60.5, 4.55 %
    2. Rs. 60, 5%
    3. Rs. 80.5, 5.55 %
    4. None of these

  1. View Hint View Answer Discuss in Forum

    Cost of shares = 44(25 + 5 + 1/4) = Rs. 1331
    ∴ Investment made = Rs. 1331
    Now, face value of 1 share = Rs. 25
    ∴ Face value of 44 shares = Rs. (44 x 25) = Rs. 1100

    Now, dividend on Rs. 100 = Rs. 11/2
    ∴ Dividend on Rs. 1100 = Rs. [(11/2) / 100] x 1100 = Rs. 60.50

    Correct Option: A

    Cost of shares = 44(25 + 5 + 1/4) = Rs. 1331
    ∴ Investment made = Rs. 1331
    Now, face value of 1 share = Rs. 25
    ∴ Face value of 44 shares = Rs. (44 x 25) = Rs. 1100

    Now, dividend on Rs. 100 = Rs. 11/2
    ∴ Dividend on Rs. 1100 = Rs. [(11/2) / 100] x 1100 = Rs. 60.50

    Also, income on investment of Rs. 1331 = Rs. 60.50
    ∴ Income on investment of Rs. 100 = Rs. (60.50 / 1331) x 100 = 4.55%


  1. A company declared an annual dividend of 10%. Find out the annual dividend received by Anu owning 4000 shares of the company having a face value of $ 100 each.
    1. $ 45000
    2. $ 40000
    3. $ 50000
    4. $ 60000

  1. View Hint View Answer Discuss in Forum

    ∵ Annual dividend on 4000 shares = Total shares x Annual dividend on one share

    Correct Option: B

    Given in the question :- Face value = $ 100 , Total shares = 4000
    Annual dividend on one share = 10% of Face value
    Annual dividend on one share = 10% of $ 100

    Annual dividend on one share = $10x 100 = $ 10
    100

    ∴ Annual dividend on 4000 shares = Total shares x Annual dividend on one share
    Annual dividend on 4000 shares = $ (4000 × 10) = $ 40000



  1. Jatin invested $ 27260 in buying $ 100 shares of a company at $ 116 each. If the company paid 16% dividend at the end of the year, find his income from the dividend.
    1. $ 3560
    2. $ 2760
    3. $ 3760
    4. $ 3660

  1. View Hint View Answer Discuss in Forum

    Number of shares purchased by Jatin = Total investment
    Face value

    ∴ Annual income from 235 shares = 16% x Face value of 235 shares

    Correct Option: C

    Given that :- Face value = $ 116 each
    Total investment by Jatin = $ 27260

    Number of shares purchased by Jatin = Total investment
    Face value

    Number of shares purchased by Jatin = 27260= 235.
    116

    Face value of 235 shares = $ (235 × 100) = $ 23500.
    ∴ Annual income from 235 shares = 16% x Face value of 235 shares
    Annual income from 235 shares = 16% of $ 23500
    Annual income from 235 shares = $16x 23500= $ 3760
    100


  1. Find the income on 12% stock of $ 60000 purchased at $ 110.
    1. $ 7200
    2. $ 7500
    3. $ 7400
    4. $ 8200

  1. View Hint View Answer Discuss in Forum

    Required Income on $ 60000 = Income on $ 1 stock x Face value of the stock

    Correct Option: A

    Given that :- Face value of the stock = $ 60000
    ∵ Income on $ 100 stock = $ 12

    ∴ Income on $ 1 stock = $12
    100

    Required Income on $ 60000 = Income on $ 1 stock x Face value of the stock
    Required Income on $ 60000 = $12x 60000 = $ 7200
    100



  1. Find out the investment required to get an income of $ 1938 from 91/2% stock at 90 (Brokerage 1%).
    1. $ 19642.60
    2. $ 17543.00
    3. $ 18543.60
    4. $ 18600.60

  1. View Hint View Answer Discuss in Forum

    Brokerage = 1% $ 90 = $ 0.90
    ∴ Investment needed to buy $ 100 stock
    = $ 90.90 on which the income is $ 9%
    For income of $ 91/2 , the investment = $ 90.90

    Correct Option: C

    Given that :- Brokerage = 1% $ 90 = $ 0.90
    ∴ Investment needed to buy $ 100 stock
    = $ 90.90 on which the income is $ 9%
    For income of $ 91/2 , the investment = $ 90.90
    For income of $ 1938, the investment

    = $ 90.90 x 2x 1938 = $ 18543.60 .
    19