Advertisements
Advertisements
Question
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.
Advertisements
Solution
No. of shares = 600
Nominal value of a share =Rs 50
Investment by Mahesh =Rs (50 x 600) =Rs 30,000
Shares sold at premium = `1/3` x 600 = 200
Market value ofa share with Premium= Rs (50 + 20) =Rs 70
Value of 200 shares= Rs (70 x 200) =Rs 14,000 ............ (i)
Shares sold at discount= 600 - 200 = 400
Market value of a share with discount = Rs ( 50 - 5) = Rs 45
Value of400 shares= Rs (45 x 400) =Rs 18,000 ............ (ii)
Adding ( i) and (ii), gives total money Mahesh received by selling his shares = Rs ( 14,000 + 18,000) = Rs 32,000
Difference in selling price and cost price =Rs (32,000 -30,000) =Rs 2,000
Hence, Mahesh gained Rs 2,000
APPEARS IN
RELATED QUESTIONS
How much money will be required to buy 200, Rs. 25 shares at a premium of Rs. 2?
Saurav invested 10%, 30% and 40% of his savings in buying shares of 3 different companies A, B and C which declared dividends of 12%, 15% and 16% respectively. If Saurav's total income from dividends is Rs 3,025, find his savings and the amount invested in each company.
Karan buys 125 shares of Rs 100 each of 'Reliance Technologies Ltd.' which pays a dividend of 6%. He buys them at such a price that he gets 4% of his money. At what price did Karan buy the share?
Vikram bought 200 shares of Rs 25 each of 'Calcutta Jute Co.' paying 8% of dividend. Vikram bought them at such a price that he gets 10% of his money. At what price did he buy the share?
Which among these is a better investment:
12.5% at 125 or 7.5% at 80
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.
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?
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?
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?
Mamta invested Rs. 10,846 in buying the shares of a company at Rs. 17 each. If the face value of each share be? 10 and company paid 15% dividend at the end of the year, find the dividend earned by her.
