FV and MV

Q.

Dividend is always calculated on the Face Value of a share.

1. True

2. False

Q.

Jash sold a certain number of shares of Rs 20 paying 8% dividend at Rs 18 and invested the proceeds in Rs 10 shares, paying 12% dividend at 50% premium. If the change in his annual income is Rs 120, find the number of shares sold by him.

1. 750

2. 100

3. 850

4. 700

Q.

Face Value (FV) of a share is also called its

1. Nominal Value

2. Printed Value

3. Par Value

4. Market Value

Q. If MV > FV , then the share is at _______.

1. Par
2. Premium
3. None of these
4. Discount

Q.

Stock Exchange works as a mechanism for the valuation of securities through the forces of demand and supply. Identify the related functions performed by the stock exchanges.

Q.

If Market Value (MV) ___ Face Value (FV) then the share is at discount.

1. $>$

2. $<$

3. $=$

4. Can't say

Q.

The price at which the shares are sold or purchased in the stock market is called _____.

1. capital
2. equity
3. market value (MV)
4. face value (FV)

Q.

Mr. Arun Pandit invests Rs 12000 in a company paying dividend of 8% per annum when a share of face value Rs 100 stands at Rs 150.

i) What is his annual income?

ii) He sells 50% of his shares when the price rises to Rs 180. What is his gain on his transaction?

1. Rs 640Rs , Rs 1700

2. Rs 640 , Rs 1200

3. Rs 530Rs , Rs 1200

4. Rs 530Rs , Rs 1700

Q. Match the following Market value (M.V.) with the type of share if the Face value (F.V.) of the share is 100.

1. Share is at premium
2. Share is at par
3. Share is at discount

Q.

Maggie invests ₹9600 on ₹100 shares at ₹80. If the company pays her $18\%$ dividend then what is her percentage return?

1. $22.5\%$

2. $25\%$

3. $12.5\%$

4. $10\%$

Q.

The Face Value (FV) of a share is ₹$150$ while its Market Value (MV) is ₹$200$. If 100 shares are purchased by a person, find the sum he invested in the shares.

1. $\text{Rs.}10000$

2. $\text{Rs.}15000$

3. $\text{Rs.}20000$

4. $\text{Rs.}25000$

Q.

A man wants to buy 62 shares available at Rs 132(par value of Rs 100)

(i) How much should he invest?

(ii) If the dividend is 7.5 %. What will be his annual income?

1. Rs 8184, Rs 465

2. Rs 8184, Rs 495

3. Rs 7184, Rs 465

4. Rs 7184 , Rs 495

Q.

A man sold 600 (Rs 25) shares paying 6½% dividend at Rs 22 and invested the sale proceeds in Rs 10 shares, paying 9% at Rs 12. What was his annual income at 9%?

1. Rs 998

2. Rs 995

3. Rs 890

4. Rs 990

Q. If the face value of a share is ₹40 and the MV is 12% above the FV, then which of the following statements is correct?

1. The share is at par
2. The share is at a discount of ₹8.4
3. The share is at a discount of ₹4.8
4. The share is at a premium of ₹4.8

Q.

A father and his son are $50$ years and $20$ years old respectively$.$ Find the ratio of fathers age to his sons age when the son will be $40$ years old$.$

Q.

Select the true statements among the following statements:

1. If MV $>$ FV, then the share is at premium

2. If MV$=$ FV, then the share is at par

3. If MV $<$ FV the the share is at discount

4. Market Value $\propto$ Demand of shares

Q. Shreya purchased shares worth FV ₹45 at a premium of ₹15. How many shares will she get for ₹18600?

1. 300
2. 301
3. 310
4. 330

Q. A man buys ₹20 shares paying $9\%$ dividend. The man wants to have an interest of $12\%$ on his money. How much is the market value of each share?
[1 Mark]

Q. Bindu purchased shares of a company at ₹75 which had FV of ₹75. The share was at _____.

1. None of these
2. discount
3. par
4. premium

Q. Are proposed dividend and provision for tax short term provisions? Are these considered as long term provision for preparing Cash Flow? What is the effect of them being considered as short term provision on Cash Flow?

Q.

Chaitya sold Rs 100 shares at 10% discount and invested in 15% Rs 50 shares at Rs 33. Had he sold his shares at 10% premium instead of 10% discount, he would have earned Rs 450 more. Find the number of shares sold by him.

1. 99 Shares

2. 100 Shares

3. 101 Shares

4. 98 Shares

Q.

If the Market Value of a share is less than the Nominal Value, the share is said to be at _______.

1. discount

2. premium

3. par

4. cash value

Q. The dividend can be calculated either on the market value.

1. True
2. False

Q. The dividend is always reckoned on the basis of _____

1. Market Value
2. Face Value
3. (a) and (c) above.
4. NAV

Q. A share is said to be ______, if its market value is more than its face value.

1. dividend
2. below par
3. at par
4. above par

Q. Select the proper option for the options given below and rewrite the sentences :
If a share of $₹100$ is issued at $₹100$, it is said to issued at ________.

1. Premium
2. Par
3. Discount
4. None of these

Q. In the case of __________ coins, intrinsic value is less than their face value.

1. token
2. representative
3. full-bodied
4. standard