Advertisements
Advertisements
Question
Mr Lele sold 250 shares of Rs 75 each of 'IOCL' paying 8% of dividend at Rs 112. He invested the proceeds in buying Rs 125 shares of HPCL paying 8% of dividend available at Rs 140. Calculate the number of shares of HPCL that Mr Lele bought and the change in his annual income.
Advertisements
Solution
In first case: No. of shares sold = 250
Face value of each share =Rs 75
Face value of 250 shares= Rs (75 x 250) =Rs 18,750
Market value of each share = Rs 112
Market value of250 shares= Rs (112 x 250) =Rs 28,000
Dividend (income) for 250 shares = 8 % of Rs 18,750 =
Rs `(8 xx 18750)/100` = Rs 1500
In second case:
Proceeds from selling 250 shares =Rs 28,000
Face value of each share =Rs 125
Market value of each share = Rs 140
No. of shares bought = `28000/140 = 200`
Mr Lele bought 200 shares of Rs 140 each.
Face value of 200 shares =Rs ( 125 x 200) =Rs 25,000
Dividend (income) for 200 shares = 8 % of Rs 25,000 =
Rs `(8 xx 25000)/100` = Rs 2000
Change in annual income= Rs (2,000 -1,500) =Rs 500
APPEARS IN
RELATED QUESTIONS
Peter invests Rs. 5,625 in a company paying 7% per annum when a share of Rs. 10 stands from Rs. 12.50. Find Peter’s income from this investment.
If he sells 60% of these shares from Rs. 10 each, find his gain or loss in this transaction.
Mr. Gupta has a choice to invest in ten-rupee shares of two firm at Rs. 13 or at Rs. 16. If the first firm pays 5% dividend and the second firm pays 6% dividend per annum, find:
- which firm is paying better.
- if Mr. Gupta invests equally in both the firms and the difference between the returns from them is Rs. 30, find how much, in all, does he invest?
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.
Ashutosh invested Rs 58,500 in buying shares of Rs 150 each of 'Van Chemicals', when it was available in the market at a premium of 30%. He sells one third of them at a market rate of Rs 215, one third of them at a market rate of Rs 195 and the rest at Rs 175. Find his loss or gain from the transaction.
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.
Akanksha invested 15%, 25% and 35% of her savings in buying shares of 'Infosys', 'Wipro' and 'Reliance' which declared dividends of 16%, 18% and 20% respectively. If her total income from dividends is Rs 52,125, find her savings and the amount invested in each company.
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.
Which among these is a better investment:
15% at 80 or 12% at 75
Ramesh had Rs 100 shares of 'Bihar Steel' paying 8% dividend. He sold them at a market price of Rs 130 and invested the proceeds in buying Rs 50 shares of 'Jindal steel' available at Rs 75 and paying 12% dividend. He thus increased the annual income by Rs 360. How many shares did Ramesh sell?
Which in better investment: 7% Rs. 100 shares at Rs.120 or 8% Rs. 10 shares at Rs. 13.50.
