Question

Ajeet invests ₹ 9000 in a company paying a dividend of 6% per annum when its ₹ 100 shares can be bought for ₹ 150. Find :-

i) his annual income

ii) If he sells 50% of his shares at ₹ 200 each, what is his gain in this transaction?

• A. i) 260 ii) ₹ 1000
• B. i) ₹ 160 ii) ₹ 2000
• C. i) ₹ 360 ii) ₹ 1500
• D. i) ₹ 260 ii) ₹ 2500

Answer 1

The correct option is C

i) ₹ 360 ii) ₹ 1500

Ajeet invested ₹ 9000 and Market value of each share is ₹ 150

so, Number of shares bought by Ajeet = $\frac{₹9000}{₹1500}=60$

His annual income = No of shares $\times$ Dividend % $\times$ N.V

= $60\times \frac{6}{100}\times 100=₹360$

He sold 50% of his share i.e 30 shares at ₹ 200

Money received on selling shares = 30 $\times$ 20 = ₹ 6000

cost of the 30 shares = $30\times 150₹4500$

So, gain in the transaction = ₹ 6000 - ₹ 4500

= ₹ 1500