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. 8,400. Calculate the number of shares he still holds the dividend due to him on these remaining shares.

• A. 300, Rs. 4,500
• B. 300, Rs. 5,500
• C. 330, Rs. 4,500
• D. 330, Rs. 5,500

Answer 1

The correct option is A 300, Rs. 4,500

No of shares purchased $=\frac{45000}{125}=360$ shares

No of shares sold $=\frac{8400}{140}=60$ shares

No of shares he still holds $=360-60=300$ shares

Dividend due on remaining shares $=\frac{15}{100}\times 300\times 100=Rs4500$