Rohit invested ₹ 9,600 on ₹ 100 shares at ₹ 20 premium paying 8% dividend. Rohit sold the shares when the price rose to ₹ 160. He invested the proceeds (excluding dividend) in 10% ₹ 50 shares at ₹ 40. Find the :

(i) original number of shares.

(ii) sale proceeds.

(iii) new number of shares.

(iv) change in the two dividends.

(i) M.V. of first type of share = ₹ 100 + ₹ 20 = ₹ 120.

Investment = ₹ 9,600

No. of shares = $\dfrac{\text{Investment}}{\text{M.V.}} = \dfrac{9600}{120}$ = 80.

Hence, no. of shares = 80.

(ii) S.P. of 1 share = ₹ 160,

S.P. of 80 shares = 80 × ₹ 160 = ₹ 12,800.

Hence, sale proceeds = ₹ 12,800.

(iii) M.V. of second type of share = ₹ 40.

Investment = ₹ 12,800

No. of shares = $\dfrac{\text{Investment}}{\text{M.V.}} = \dfrac{12800}{40}$ = 320.

Hence, no. of shares = 320.

(iv) Annual dividend = No. of shares × Rate of div. × N.V. of 1 share

In first case :

Annual dividend = 80 × $\dfrac{8}{100} \times 100$ = ₹ 640.

In second case :

Annual dividend = 320 × $\dfrac{10}{100} \times 50$ = ₹ 1600.

Difference = ₹ 1600 - ₹ 640 = ₹ 960

Hence, there is an increase of ₹ 960 in dividend amount.