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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. - Mathematics

Sum

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.

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Solution

Total investment = Rs (24,000+30,000) = Rs 54,000 

No. of shares of 'Vam Organics' = `"money invested"/"Cost of one share" = 24000 /100 = 240`

No. of shares of 'Hero Honda' = `"money invested"/"Cost of one share" = 30000/100 = 300`

Dividend given by 'Vam Organics' = 12 % = Rs `(12 xx 24000)/100` = Rs 2880

Dividend given by 'Hero Honda' = 15 % = Rs `(15 xx 30000)/100` = Rs 4500

Total dividend earned = Rs (2,880+4,500) =Rs 7,380 

Money earned by selling shares of 'Varn Organics' = Rs (95 x 240) 

= Rs 22,800 

Money earned by selling shares of 'Hero Honda' = Rs (90 x 300) 

= Rs 27,000 

Total money earned by selling shares = Rs (22,800+27,000) = Rs 49,800 

Total earnings = money earned by selling shares +dividends earned 

=Rs (49,800+7,380) = Rs 57,180 

Tarun's earnings from the transactions= Rs (57, 180-54,000) 

= Rs 3,180 

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 3 | Page 63
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