Question

A man invested Rs 45,000 in 15% Rs 100 shares quoted at Rs 125. When the market value of these shares rose to Rs 140, he sold some shares, just enough to raise Rs 8400. Calculate the :
(i) Number of shares he still holds ;
(ii) Dividend due to him on these remaining shares.
[3 MARKS]

Answer 1

Each subpart: 1.5 Marks

(i) No. of shares he had $=\frac{45000}{125}=360$
No. of shares he sold $=\frac{8400}{140}=60$
$\therefore$ No. of shares he still holds = 360 - 60
= 300 shares.
(ii) $Dividend=Rs(\frac{15}{100}\times 100\times 300)=Rs4500$