Question

Rajat wants to buy 72 shares available at Rs 134 (par value of Rs 100). ?
(i) Rs 9648
(ii) Rs 468
(iii) 30 shares

Answer 1

Given that
Rajat wants ti buy 72 shares at Rs. 134
Nominal value of shares = Rs. 100
(i) The amount which he must invest to buy 72 shares $=72\times 134=Rs.9648$

(ii) The dividend is 6.5%
$\therefore$ His annual income = 6.57 of $(72\times 100)=\frac{6.5}{100}\times 72\times 100=Rs.468$

(ii) The total amount which Rajat makes after investing in 1 share = $\frac{6.5}{100}\times 100=Rs.6.5$
Now, if he wants to make Rs. 195, the number of shares he needs to buy $=\frac{195}{6.5}=30$
So, Rajat needs to buy 30 extra shares.