Mathematics
₹ 50 shares of a company are bought by John at 20% discount and sold at the gain of 25%.
Assertion (A): The net gain on each share is 5%.
Reason (R): The selling price of each share = .
A is true, R is false.
A is false, R is true.
Both A and R are true and R is correct reason for A.
Both A and R are true and R is incorrect reason for A.
Shares & Dividends
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Answer
A is false, R is true.
Reason
Face value of share = ₹ 50
Discount = 20%
Discounted value = 20% of ₹ 50 = = ₹ 10
Discounted price = ₹ 50 - ₹ 10 = ₹ 40
Gain = 25%
Selling price = ₹ 40 + 25% of ₹ 40
= ₹ 40 + = ₹ (40 + 10) = ₹ 50
Gain = ₹ 50 - ₹ 40 = ₹ 10
Gain % =
= = 25%
So, Assertion (A) is false.
As per the Reason (R),
The selling price of each share =
This is equal to the selling price computed above.
So, Reason (R) is true.
Hence, option 2 is correct.
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Related Questions
Each of ₹ 500 shares is available at a discount of ₹ 100. If the dividend on these shares is 8%, the income percent is :
8%
15%
5%
10%
Investing in 16% ₹ 100 shares at ₹ 80 or in 20% ₹100 shares at ₹120.
Assertion (A): It is better to invest in 16% ₹ 100 shares at ₹ 80.
Reason (R): Return % from the shares = .
A is true, R is false.
A is false, R is true.
Both A and R are true and R is correct reason for A.
Both A and R are true and R is incorrect reason for A.
₹ 2,250 is invested in buying ₹ 50 shares available at 10% discount and the dividend paid by the company is 12%.
Statement (1) : Number of shares bought = = 50
Statement (2) : Total dividend paid by the company = (12% of ₹ 50) x 50
Both the statements are true.
Both the statements are false.
Statement 1 is true, and statement 2 is false.
Statement 1 is false, and statement 2 is true.
100 shares are bought at ₹ 60 per share and the dividend received is ₹ 600.
Statement (1) : Rate of return x ₹ 60 x 100 = ₹ 600
Statement (2) : Rate of return x Market value = Dividend received on each share
Both the statements are true.
Both the statements are false.
Statement 1 is true, and statement 2 is false.
Statement 1 is false, and statement 2 is true.