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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