## Stocks and Shares

#### 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. 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. ∵ 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 = \$ 10 x 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.  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 = \$ 16 x 23500 = \$ 3760 100

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

1. 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 = \$ 12 x 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. 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 2 x 1938 = \$ 18543.60 . 19