Arithmatical -Stock and Shares

DIRECTIONS : Problems based on Stock and Shares.
1. A man invested Rs.14,400 in Rs.100 shares of a company at 20% premium. If the company declares 5% dividend at the end of the year, then how much does he get?
  A.  Rs.500
  B.  Rs.600
  C.  Rs.650
  D.  Rs.720
Solution
Number of shares= (14400 / 120)
=120.
Face value=Rs.(100 ×120)
=Rs. 12000.
Annual Income= Rs.(5/100 ×12000)
=Rs. 600.
2. A invested some money in 10% stock at 96. If B wants to invest in an equality good 12% stock, he must purchase a stock worth of
  A.  Rs.50
  B.  Rs.60
  C.  Rs.115.20
  D.  Rs.125.40
Solution
For an income of Rs. 10, investments= Rs. 96.
For an income of Rs. 12, investments= Rs. (96/10 x 12)
= Rs. 115.20.

3. A man buys Rs.50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investments, at what price did he buy the shares?
  A.  Rs.37.50
  B.  Rs.40
  C.  Rs.48
  D.  Rs.52
Solution
Dividend on 1 share =Rs.(10/100 x 50)
= Rs. 5
Rs.12.50 is an income on an investments of Rs.100.
Rs.5 is an income on an investments of Rs.(100x2/25x5)= Rs. 40.
Cost of 1 share = Rs.40.
4. A 6% stock yields 8%. The market value of the stock is
  A.  Rs.48
  B.  Rs.75
  C.  Rs.96
  D.  Rs.133.33
Solution
For an income of Rs. 8, investments= Rs. 100.
For an income of Rs. 6, investments= Rs.(100/8 x 6)
Market value of Rs.100 stock = Rs. 75.
5. A man invests some money partly in 9% stock at 96 and partly in 12% stock at 120. To obtain equal dividends from both he must invest the money in the ratio
  A.  3 : 4
  B.  3 : 5
  C.  4 : 5
  D.  16 : 25
Solution
For an income of Re. 1 in 9% stock at 96, investments= Rs. (96 / 9).
= Rs.(32/3).
For an income of Re.1 in 12% stock at 120, investments
=Rs.(120/12 )
= Rs.10.
Ratio of investments= 32/3 : 10= 32 : 30
= 16 : 25.
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