Question

Manu invested ₹45,000 in 15% ₹ 100 shares quoted at ₹125. When the market value of these shares rose to ₹140, he sold some shares, just enough to raise ₹8,400. The number of shares he still holds and the dividend due to him on these remaining shares are respectively _____.

• A. 300, Rs 8400
• B. 200, Rs 1500
• C. 200, Rs 2400
• D. 300, Rs 4500

Answer 1

The correct option is D

300, Rs 4500

Total amount invested by manu = ₹45,000
Market Value of each share at the time of investment = ₹125
Nominal value of each share = ₹ 100
No of shares bought = $\frac{45000}{125}=360$
Present market value = ₹140
Total amount generated after Manu sold the shares = ₹ 8400
No of shares sold is:- $\left(\frac{\text{amount generated}}{\text{Present Market value}}\right)=\frac{8400}{140}=60$
Remaining shares = 360 - 60 = 300
Dividend due to him on remaining shares is
$\Rightarrow 300\times 100\times \left(\frac{15}{100}\right)=₹4500$