100+ Stocks and Shares Problems with Solutions Pdf - 2

Question: 6

At what price should I buy a share the value of which is Rs. 100, playing a dividend of 8% so that may yield is 11%?

(A) Rs. 70

(B) Rs. 71

(D) Rs. 84

View Answer

Ans: C

Dividend on Rs. 100 = 8% of 100 = Rs. 8.

Rs. 11 is an income on Rs. 100.

∴ Rs. 8 is an income on Rs. $$({100} / {11} × 8)$$ = Rs. 72.72.

Question: 7

A 9% stock yields 8%. The market value of the stock is

(A) Rs. 72

(B) Rs. 82

(D) Rs. 112.50

View Answer

Ans: D

To obtain Rs. 8, investment = Rs. 100.

To obtain Rs. 9, investment = Rs. $$({100} / {8} × 9)$$ = Rs. 112.50.

∴ Market value of Rs. 100 stock = Rs. 112.50.

Question: 8

A company declared an annual dividend of 10%. Find out the annual dividend received by Anu owing 4000 shares of the company having a par value of Rs.100 each

(A) Rs. 40000

(B) Rs. 45000

(D) Rs. 60000

View Answer

Ans: A

Annual dividend on one share = 10% of Rs. 100 = $$({10} / {100} × 100)$$ = Rs. 10.

∴ Annual dividend on 4000 shares = Rs. (4000 × 10) = 40,000.

Question: 9

What investment will be required to purchase Rs. 90000 of 8% stock at 110?

(A) Rs. 80000

(B) Rs. 88000

(D) Rs. 99500

View Answer

Ans: C

Market value of Rs. 100 stock = Rs. 110.

∴ Market value of Rs. 90000 stock = Rs. $$({110} / {100} × 90000)$$ = Rs. 99000.

∴ An investment of Rs.99000 is required to purchase Rs. 90000 of 8% stock at 110.

Question: 10

A man invested Rs. 14,400 in Rs. 100 shares of a company at 20% premium. If the company declares 5% dividend at the end of the year, then how much does he get?

(A) Rs. 500

(B) Rs. 600

(D) Rs. 800

View Answer

Ans: B

Number of shares = $$({14400} / {120})$$ = 120.

Face value = Rs. $$(100 × 120)$$ = Rs. 12000.

Annual income = Rs. $$({5} /{100} × 12000)$$ = Rs. 600.

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100+ Stocks and Shares Problems with Solutions Pdf - 2

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