Advertisements
Advertisements
Question
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?
Advertisements
Solution
For shares of 'Bihar Steel':
Let x be the no. of shares sold by Ramesh.
Nominal value of each share =Rs 100
Face value of x shares = Rs 100x
Market value of each share = Rs 130
Market value of x shares = Rs 130x = proceeds from selling
Dividend = 8 % of Rs 100 x = `8/100 xx "Rs" 100 x` = Rs 8 x .............(i)
For shares of 'Jindal Steel':
Market value of each share = Rs 75
Number of shares bought = proceeds from selling 'Bihar steel' I market value of 'Jindal steel'
=`(130 x )/75`
Nominal value of each share =Rs 50
Face value of `(130 x)/75` shares = Rs `50 xx (130 x)/75` = Rs 86.667 x
Dividend = 12 % of Rs 86.667 x = Rs `(12 xx 86.667 x)/100` = Rs 10.40 x .........(ii)
Increase in annual income =Rs 360 =subtraction of (i) from (ii)
Rs ( 10.40x - 8x) = Rs 360
⇒ 2.4x = Rs 360
⇒ x = 150
Therefore, Ramesh sold 150 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.
Yash has 1200 shares of Rs 150 each of 'Honeywell Corporation' paying 18% dividend. Find his net income after paying.
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.
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?
Which among these is a better investment:
12% at 125 or 16% at 150
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.
Amitesh had 400 shares of Rs 100 each of 'Telco' paying a dividend of 12.5%. He sold them at a market price of Rs 125 and invested the proceeds in Rs 50 shares of 'Adani Motors' available in the market at Rs 80 and paying a dividend of 16%. How many shares of Adani Motors did Amitesh buy and what is the change in his annual income?
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.
