100+ Problems on Stocks and Shares Questions and Answers - 1

Ans: B

For an income of Rs. 12, stock needed = Rs.100.

For an income of Rs.1200, stock needed

= Rs. $$({100} / {12} × 1200)$$

= Rs.10,000.

Ans: D

Cost price of 1 unit of share = (100 – 4) = Rs. 96.

For 20 shares investment = 20 × 96 = Rs. 1920.

Dividend = $$({12} / {100} × 100)$$ x 20 = Rs. 240.

∴ Rate of interest obtained = $${240} / {1920} × 100$$ = 12.5%.

Ans: B

Dividend on 50 preferred shares = Rs. $$(50 × 100 × {10} / {100})$$ = Rs. 500

Dividend on 400 common shares = Rs. $$(400 × {100} / {100} × {15} / {2} × 2)$$ = Rs.6000.

∴ Total dividend received by Sneha = Rs. (500 + 6000) = 6500.

Ans: D

The market value of a debenture = Rs. 150.

∴ Income of Rs. 150 is Rs. 10.

∴ Income of Rs. 120 = Rs. $$({10} / {150} × 120)$$ = 8%.

∴ Percent income on the debentures = 8%.

Ans: A

Dividend on Rs.20 = Rs. $$({9} / {100} × 20)$$ = Rs. $${9} / {5}$$.

Rs. 12 is an income on Rs. 100.

∴ Rs. $${9} / {5}$$is an income on Rs. $$({10} / {100} × 50)$$ = Rs. 5.