# Stocks and Shares Questions for SSC & UPSC Exams - 1

Question: 1

A company issued 50000 shares of par value of Rs. 100 each. If the total dividend declared by the company is Rs.125000, out of which Rs.50000 have been kept in reserve fund and the remaining is distributed as dividend. Find out the rate of dividend paid by the company.

(A) \$\$1{1}/{2}\$\$%

(B) \$\$1{1}/{4}\$\$

(C) \$\$2{3}/{4}\$\$

(D) 2%

Ans: A

Total dividend declared = Rs. 125000

Amount kept in reserve fund = Rs. 50000

Net amount paid as dividend to the shareholders

= Rs. (125000 – 50000) = Rs. 75000

Number of shares of par value of Rs. 100 each = 50000

Total par value of 50000 shares = Rs. (50000 × 100) = Rs. 5000000

Rate of dividend paid by the company

= \$\$({75000} / {5000000} × 100)%\$\$ = \$\${3}/{2}\$\$% = \$\$1{1}/{2}\$\$%.

Question: 2

A wants to secure an annual income of Rs.1500 by investing in 15% debentures of face value of Rs.100 each and available for Rs.104 each. If the brokerage is 1% then the sum of money he should invest is

(A) Rs. 10204

(B) Rs. 10504

(C) Rs. 10784

(D) Rs. 15000

Ans: B

Income on each debenture = 15% of Rs. 100 = Rs. 15.

Number of debenture required = Rs. \$\$({1500}/{15})\$\$ = Rs. 100.

Cost of each debenture

= Rs. (104 + 1% of 104) = (104 + 1.04) = Rs. 105.04.

∴ Total investment = Rs. (105.04 × 100) = Rs. 10504.

Question: 3

A medicine company issued 125000 shares of par value of Rs.20 each. If the total dividend declared by the company is Rs. 375000, find out the rate of dividend paid by the company.

(A) Rs. 10%

(B) Rs. 13%

(C) Rs. 14%

(D) Rs. 15%

Ans: D

Number of shares = 125000

Par value of a share = Rs. 20.

∴ Total par value of 125000 shares

= Rs. (1250000 × 20) = Rs. 2500000

Total dividend = Rs. 375000

∴ Rate of dividend paid by the company

= \$\$({375000}/{2500000} × 100)%\$\$ = 15%.

Question: 4

Find the income on \$\$7{1}/{2}%\$\$ stock of Rs. 20000 purchased at Rs.120.

(A) Rs. 1450

(B) Rs. 1500

(C) Rs. 1550

(D) Rs. 1600

Ans: B

Face value of the stock = Rs. 20000

Income on Rs. 100 stock = Rs. \$\$7{1}/{2}\$\$

Income on Rs. 1 stock = Rs. \$\$({15/2} /{100})\$\$ = Rs. \$\$({15}/{200})\$\$

Income on Rs. 20000 stock = Rs. \$\$({15}/{200} × 20000)\$\$ = Rs. 1500.

Question: 5

Mac buys 200 shares of par value of Rs. 10 each, of a company, which pays an annual dividend of 8% at such a price that he gets 10% on his investment. Find the market value of share.

(A) Rs. 6

(B) Rs. 8

(C) Rs. 10

(D) Rs. 12

Ans: B

Par value of 200 shares = Rs. (200 × 10) = Rs. 2000

Dividend received by Mac = Rs. \$\$({8}/{100} × 2000)\$\$ = Rs. 160

Let, the market value of 200 shares be Rs. x.

We have to find x such that 10% of x = 160

⇒ \$\${10}/{100} × x\$\$ = 160

⇒ x = 160 × 10 = 1600

i.e. Market value of 200 shares = Rs. 1600.

Hence, the market value of one share = Rs. \$\$({1600}/{200})\$\$ = Rs. 8.

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