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Rohit Had 1000 Shares of Rs 125 Each of 'New Delhi Times' Paying a Dividend of 12%. - Mathematics

Sum

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?

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Solution

In first case:

No. of shares sold = 1000

Face value of each share = Rs 125

Face value of 1000 shares = Rs (125 x 1000) =Rs 1,25,000 

Market value of each share = Rs 150 

Market value of 1000 shares = Rs ( 150 x 1000) = Rs 1,50,000 

Dividend (income) for 1000 shares = 12 % of Rs 1,25,000 = Rs `(12 xx 125000)/100` = Rs 15000

In second case: 

Proceeds from selling 1000 shares = Rs 1, 50, 000

Face value of each share = Rs 25 

Market value of each share = Rs 60 

No. of shares bought = `150000/60 = 2500`

Rohit bought 2,500 shares of Rs 60 each.

Face value of 2,500 shares =Rs (25 x 2,500) =Rs 62,500 

Dividend (income) for 2,500 shares = 20 % of Rs 62,500 = `(20 xx 62500)/100` = Rs 12500

Change in annual income= Rs (12,500 -15,000) = - Rs 2,500 (less) 

Concept: Shares and Dividends Examples
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APPEARS IN

Frank ICSE Class 10 Mathematics Part 2
Chapter 4 Shares and Dividends
Exercise 4.2 | Q 12 | Page 64
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