Mathematics
A man sold 400 (₹ 20) shares of a company, paying 5% at ₹ 18 and invested the proceeds in (₹ 10) shares of another company paying 7% at ₹ 12. How many (₹ 10) shares did he buy and what was the change in his income ?
Shares & Dividends
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Answer
In first case :
Annual income = No. of shares × Rate of div. × N.V. of 1 share
= 400 ×
= ₹ 400.
S.P. of shares = 400 × ₹ 18 = ₹ 7,200
M.V. of second type of shares = ₹ 12
No. of shares purchased = = 600.
In second case :
Annual income = No. of shares × Rate of div. × N.V. of 1 share
= 600 ×
= ₹ 420.
Change in income = ₹ 420 - ₹ 400 = ₹ 20.
Hence, no. of shares (₹ 10) bought = 600 and change in income = ₹ 20 (increase).
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Related Questions
₹100 shares of a company giving 10% dividend are selling at ₹150. Mr. Saha invests ₹ 18,000 to buy these shares. He sells 80% of his shares after one year. Find :
(a) the number of shares he purchased.
(b) the number of shares he sold.
(c) his annual income from the remaining 20% shares he still holds.
Mr. Gautam sold a certain number of ₹ 20 shares paying 8% dividend at ₹ 18 and invested the proceed in ₹ 10 shares paying 12% dividend at 50% premium. If the change in his annual income is ₹ 120, find the number of shares sold by Mr. Gautam.
A man invests ₹ 50,000 of his savings in 12%, ₹ 100 shares at ₹ 125 another ₹ 60,000 in 15%, ₹ 100 shares at ₹ 120 and remainder 18% ₹ 100 shares at ₹ 140. If his annual income is ₹ 21,300 find :
(i) the rate of return on the whole.
(ii) the investment in third company.
Case study:
Share market is a place where investors trade different instruments like stocks, mutual funds, etc.It is a place where companies sell parts (called shares) of their companies and investors buy them in expectation of greater returns.
Mr. Reddy wants to invest his money in company which gives a better return. He has following options:
Company X : ₹ 100 shares are available at ₹ 120 with a dividend of 8% p.a.
Company Y : ₹ 10 shares are available at ₹ 8 with a dividend of 6% p.a.
Based on the above information, answer the following questions :
(i) If Mr. Reddy wants to invest ₹ 15,000 in company X, then what will be his Annual Income ?
(ii) If Mr. Reddy wants to invest ₹ 15,000 in company Y, then what will be his Annual Income ?
(iii) Which company is a better option for Mr. Reddy to invest in ?