Question

Write the correct alternative for the following questions.
(1) If the Face Value of a share is Rs 100 and Market value is Rs 75, then which of the following statements is correct ?

(A) The share is at premium of Rs 175	(B) The share is at discount of Rs 25
(C) The share is at premium of Rs 25	(D) The share is at discount of Rs 75

(2) What is the amount of dividend received per share of face value Rs 10 and dividend declared is 50%.

(A) Rs 50

(B) Rs 5

(C) Rs 500

(D) Rs 100

(3) The NAV of a unit in mutual fund scheme is Rs 10.65 then find the amount required to buy 500 such units.

(A) 5325

(B) 5235

(C) 532500

(D) 53250

(4) Rate of GST on brokerage is ...

(A) 5%

(B) 12%

(C) 18%

(D) 28%

(5) To find the cost of one share at the time of buying the amount of Brokerage and GST is to be ... the MV of share .

(A) added to	(B) substracted from
(C) Multiplied with	(D) divided by

Answer 1

(1) If MV < FV, then the share is at discount.

Discount = FV − MV = Rs 100 − Rs 75 = Rs 25

So, the share is at discount of Rs 25.

Hence, the correct answer is option (B).

(2) Amount of dividend received per share = 50% of Rs 10 = $\frac{50}{100}\times 10$ = Rs 5

Hence, the correct answer is option (B).

(3) NAV of a unit in mutual fund scheme = Rs 10.65

Number of units to be bought = 500

∴ Total amount required = NAV of a unit in mutual fund scheme × Number of units to be bought = Rs 10.65 × 500 = Rs 5,325

Hence, the correct answer is option (A).

(4) Rate of GST on brokerage is 18%.

Hence, the correct answer is option (C).

(5) To find the cost of one share at the time of buying the amount of Brokerage and GST is to be added to the MV of share.

Hence, the correct answer is option (A).