Ms. Kaur invested ₹ 8,000 in buying ₹100 shares of a company paying 6% dividend at ₹ 80. After a year, she sold these shares at ₹75 each and invested the proceeds including the dividend received during the first year in buying ₹ 20 shares, paying 15% dividend at ₹ 27 each. Find the :

(a) dividend received by her during the first year.

(b) number of shares purchased by her using the total proceeds.

Given,

For initial investment,

Investment = ₹ 8,000

Face Value = ₹ 100

Market Value = ₹ 80

Dividend Rate = 6%

By formula,

Number of shares = $\dfrac{\text{Investment}}{\text{Market value of each share}}$

= $\dfrac{8000}{80}$

= 100

By formula,

Dividend for the first year = No. of shares × Rate of div. × N.V. of 1 share

= 100 × $\dfrac{6}{100}$ × 100

= ₹ 600

Hence, dividend for first year = ₹ 600.

(b) Given,

Number of shares sold = 100

Selling price per share = ₹ 75

Proceeds from sale = Number of shares × selling price

= 100 × 75

= ₹ 7,500

Total proceeds = Proceeds from sale + Dividend received = 7500 + 600 = ₹ 8,100

Total investment = ₹ 8,100

Market value per share = ₹ 27

Number of new shares = $\dfrac{\text{Investment}}{\text{Market value of each share}}$

= $\dfrac{8100}{27}$

= 300.

Hence, number of shares purchased by Ms. Kaur = 300.