Advertisements
Advertisements
Question
Payal had Rs 125 shares of 'Asian Chemicals' paying 12% dividend. She sold them at Rs 150 and invested the proceeds in Rs 50 shares of 'Saras Chemicals' at Rs 40 and paying 10% dividend. She thus increased her income by Rs 825. Find the number of shares of 'Asian chemicals' that Payal sold.
Advertisements
Solution
For shares of 'Asian Chemicals':
Let x be the no. of shares sold by Pay al.
Nominal value of each share =Rs 125
Face value of x shares = Rs 125x
Market value of each share = Rs 150
Market value of x shares = Rs 150x = proceeds from selling
Dividend = 12 % of Rs 125x = `12/100` x Rs 125 x = Rs 15 x .......... (i)
For shares of 'Saras Chemicals':
Market value of each share = Rs 40
Number of shares bought= proceeds from selling 'Asian Chemicals' /market value of 'Saras Chemicals'
=`(150 x)/40 = (15 x)/4`
Nominal value of each share =Rs 50
Face value of `(15 x)/4` shares = Rs `50 xx (15 x)/4` = Rs 187.5 x
Dividend = 10 % of Rs 187.5 x = Rs `(10 xx 187.5 x)/100` = Rs 18.75 x ......(ii)
Increase in annual income =Rs 825 =subtraction of (i) from (ii)
Rs (18.75x-15x) =Rs 825
⇒ 3.75x =Rs 825
⇒ x = 220
Therefore, Payal sold 220 shares
APPEARS IN
RELATED QUESTIONS
How much should a man invest in Rs. 50 shares selling at Rs. 60 to obtain an income of Rs. 450, if the rate of dividend declared is 10%. Also find his yield percent, to the nearest whole number.
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?
Yash has 1200 shares of Rs 150 each of 'Honeywell Corporation' paying 18% dividend. Find his net income after paying.
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.
Archana bought 250 shares of Rs 50 each of 'Indal' paying 12% of dividend. She bought them at such a price that she gets 15% return on her investment. At what share did she buy the shares?
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.
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.
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?
Pramod wants to invest Rs 35,000 in shares such that the percentage return on his investment is `8 1/7 %`. He invested Rs 6,000 in 6 % Rs 50 shares of 'Lakme' at Rs 40, Rs 15,000 in 8 % Rs 100 shares of 'Volta' at Rs 125 and the remaining in 12 % shares of 'BPL'. At what rate did he buy the 'BPL' shares?
Which in better investment: 7% Rs. 100 shares at Rs.120 or 8% Rs. 10 shares at Rs. 13.50.
