CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon


Question

Mr. sharma has $$60$$ shares of $$N.V. Rs 100$$ and sells them when they are at a premium of $$60\%$$. He invests the proceeds in shares of nominal value $$Rs 50$$. quoted at  $$4\%$$ discount, and paying $$18\%$$ dividend annually. calculate:
(i) the sale proceeds:
(ii) the numbers of share he buys: and
(iii) his annual dividend from the shares.


Solution

Solution:-
(i) Nominal value of 1 share $$= Rs. 100$$

Nominal value of 60 shares $$= 60 \times 100 = Rs. 6000$$

Market value of 1 share $$= Rs. 100 + 60 \% \text{ of } Rs. 100 = 100 + 60 = Rs. 160$$

Market value of 60 shares $$= 160 \times 60 = Rs. 9600 \; \left[ \text{Answer} \right]$$

(ii) Nominal value of 1 share $$= Rs. 50$$

Market value of 1 shares $$= Rs. 50 - 4 \% \text{ of } Rs. 50 = 50 - 2 = Rs. 48$$

No. of shares purchased $$= \cfrac{9600}{48} = 200 \text{ shares} \; \left[ \text{Answer} \right]$$

(iii) Nominal value of 200 shares $$= Rs. 50 \times 200 = Rs. 10000$$

Dividend $$\% = 18 \%$$

Dividend $$= 18 \% \text{ of } Rs. 10000 = \cfrac{18}{100} \times 10000 = Rs. 1800 \; \left[ \text{Answer} \right]$$

Mathematics

Suggest Corrections
thumbs-up
 
0


similar_icon
Similar questions
View More


similar_icon
People also searched for
View More



footer-image