Advertisements
Advertisements
Question
Ananth had Rs 50 shares of 'Esco' paying 6% dividend. He sold them at a market price of Rs 80 and invested the proceeds in buying Rs 100 shares of 'Y2K Software' at Rs 150 and paying 11% dividend. He thus increased his annual income by Rs 2,150. How many shares of 'Esco' did he sell?
Advertisements
Solution
For shares of 'Esoo':
Let x be the no. of shares sold by Ananth.
Nominal value of each share =Rs 50
Face value of x shares =Rs 50x
Market value of each share = Rs 80
Market value of x shares = Rs 80x = proceeds from selling
Dividend = 6 % of Rs 50 x = `6/100` × Rs 50 x = Rs 3x ......(i)
For shares of 'Y2K Softvvare':
Market value of each share = Rs 150
Number of shares bought= proceeds from selling 'Esco' / market value of 'Y2K Softvvare'
`= (80 x)/150 = (8x)/15`
Nominal value of each share =Rs 100
Face value of `(8 x)/15` shares = Rs Rs 100 x `(8 x)/15` = Rs 53.33 x
Dividend = 11 % of Rs 53.33x = Rs `(11 xx 53.33 x)/100` = Rs 5.86 x ...........(ii)
Increase in annual income =Rs 2, 150 =subtraction of (i) from (ii)
Rs (5.86x - 3x) =Rs 2,150
2.86x =Rs 2,150
⇒ x = 751
Therefore, Ananth sold 751 shares
APPEARS IN
RELATED QUESTIONS
A man invests Rs. 22,500 in Rs. 50 shares available at 10% discount. If the dividend paid by the company is 12%, calculate:
- The number of shares purchased.
- The annual dividend received.
- The rate of return he gets on his investment. Give your answer correct to the nearest whole number.
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.
Rani has 500 shares of Rs 125 each of a company paying 12% dividend. Find her net income after paying 5% income tax.
Mahesh bought 600 shares of Rs 50 each of 'Excel Computers'. He sold one third of them when they were at a premium of Rs 20 and the remaining when they were at a discount of Rs 5. Find his gain or loss in the transaction.
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.
Tarun invested Rs 24,000 and Rs 30,000 in buying Rs 100 at par shares of 'Vam Organics' and 'Hero Honda' which later declared dividend of 12% and 15% respectively. After collecting the dividends Tarun sold the shares as their prices had fallen by Rs 5 and Rs 10 respectively. Find Tarun's earnings from the above transactions.
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.
Mr Lal wants to give a monthly scholarship of Rs 225 to a poor student. How many 15%, Rs 100 shares of 'Mercantile Co-operative Bank' should he purchase to realize his aim? What will be his investment if the market price of the share is Rs 120?
Gayathri wants to have a monthly income of Rs 500.For this she purchased Rs 75 shares of 'V.G.Electronics' paying 20% dividend. How many shares did Gayathri purchased and what is her investment if the market price of the share is Rs 62.50?
Ajay owns 560 shares of a company. The face value of each share is Rs. 25. The company declares a dividend of 9%.
Calculate:
- The dividend that Ajay will get.
- The rate of interest on his investment, if Ajay had paid Rs. 30 for each share.
