#### Question

A man invested Rs 45,000 in 15% Rs100shares quoted at Rs 125. When the market value of these shares rose to Rs 140, he sold some shares, just enough to raise Rs 8,400. Calculate:

(1) the number of shares he still holds;

(2) the dividend due to him on these remaining shares.

#### Solution

1) Total investment = Rs 45,000

Market value of 1 share = Rs 125

∴ No of shares purchased = `45000/125 = 360` shares

Nominal value of 360 shares = Rs 100 × 360= Rs 36,000

Let no. of shares sold = n

Then sale price of 1 share = Rs 140

Total sale price of n shares = Rs 8,400

Then n = `8400.140` = 60 shares

The no. of shares he still holds = 360 – 60 = 300

2) Nominal value of 300 shares = Rs 100 × 300 = Rs 30,000

Dividend% = 15%

Dividend = 15% of Rs 30,000

` =15/100 xx 30000 = Rs 4500`

Is there an error in this question or solution?

Solution for question: A Man Invested Rs 45,000 in 15% Rs100shares Quoted at Rs 125. When the Market Value of These Shares Rose to Rs 140, He Sold Some Shares, Just Enough to Raise Rs 8,400. Calculate: (1) the Number of Shares He Still Holds; (2) the Dividend Due to Him on These Remaining Shares. concept: Shares and Dividends. For the course ICSE