TNPSC Aptitude Stocks and Shares Questions & Answers - 1

Question: 1

Jatin invested Rs.27260 in buying Rs.100 shares of a company at Rs.116 each. If the company paid 16% dividend at the end of the year, find his income from the dividend.

(A) Rs. 2760

(B) Rs. 3560

(C) Rs. 3660

(D) Rs. 3760

Ans: D

Number of shares purchased by Jatin = $${27260} / {116}$$ = 235

Face value of 235 shares = Rs. (235 × 100) = Rs. 23500

Annual income from 235 shares = 16% of Rs. 23500

= Rs. $$({16}/{100} × 23500)$$ = Rs. 3760.

Question: 2

Find out the income percent of a buyer on 5% debentures of face value Rs. 95 and available in the market for Rs. 125.

(A) 2.8%

(B) 3.8%

(C) 4.8%

(D) 5.8%

Ans: B

The market value of a debenture = Rs. 125

∴ Income on Rs. 125 is Rs. 5.

∴ Income on Rs. 95 is Rs. $$({5}/{125} × 95)$$ = Rs. $${19}/{5}$$.

∴ Percent income on the debenture is 3.8%.

Question: 3

A company declared a semiannual dividend of $$7{1}/{2}$$%. Find out the annual dividend of Chetan, owning 1250 shares of the company having a par value of Rs.10 each.

(A) Rs. 1575

(B) Rs. 1680

(C) Rs. 1757

(D) Rs. 1875

Ans: D

Annual dividend on one share = $$(2 × 7{1}/{2})$$%

i.e. 15% of Rs. 10 = $$({15}/{100} × 10)$$ = Rs. 1.50

∴ Annual dividend on 1250 shares = Rs. (1250 × 1.50) = Rs. 1875.

Question: 4

A company has issued 10000 preferred shares and 50000 common shares both of par value of Rs.100 each. The dividend on a preferred share and a common share is 12% and 17.6% respectively. The company had a total profit of Rs.15 Lakhs, out of which some amount was kept in reserve fund and the remaining distributed as dividend. Find out the amount kept in reserve fund.

(A) 4 lakhs

(B) 5 lakhs

(C) 6 lakhs

(D) 6.5 lakhs

Ans: B

12% of Rs. (10000 × 100)

= Rs. $$({12}/{100} × 10000 × 100)$$ = Rs. 120000

Dividend on 50000 common shares

17.6% of Rs. (50000 × 100)

= Rs. $$({17.6}/{100} × 50000 × 100)$$ = Rs. 880000

Total dividend paid = Rs. (120000 + 880000) = Rs. 1000000 = Rs. 10 Lakhs.

∴ Amount kept in reserve fund = Rs. 15 Lakhs - 10 Lakhs = Rs. 5 Lakhs.

Question: 5

A person has deposited Rs.13200 in a bank which pays 14% interest. He withdraws the money and invests in Rs.100 stock at Rs.110 which pays a dividend of 15%. How much does he gain or lose.

(A) Gains Rs.48

(B) Loses Rs. 48

(C) Loses Rs. 132

(D) Gains Rs. 132

Ans: B

Income from bank = 14% of Rs. 13200 = Rs. 1848.

Number of shares purchased = Rs. $$({13200}/{110})$$ = Rs. 120.

Income from stock = (15% of Rs. 100) × 120 = Rs. (15 × 120) = Rs. 1800.

∴ Loss = Rs. (1848 - 1800) = Rs. 48.

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