Stocks and Shares - General Questions (2)

A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of dividend be 12%, his annual income is:

A.	Rs. 207.40
B.	Rs. 534.60
C.	Rs. 648
D.	Rs. 655.60

Answer: Option C

Explanation:

Number of shares =		4455		= 540.
		8.25

Face value = Rs. (540 x 10) = Rs. 5400.

Annual income = Rs.		12	x 5400		= Rs. 648.
		100

10.

A 6% stock yields 8%. The market value of the stock is:

A.	Rs. 48
B.	Rs. 75
C.	Rs. 96
D.	Rs. 133.33

Answer: Option B

Explanation:

For an income of Rs. 8, investment = Rs. 100.

For an income of Rs. 6, investment = Rs.		100	x 6		= Rs. 75.
		8

Market value of Rs. 100 stock = Rs. 75.

11.

By investing in 16 1-div-2by3 % stock at 64, one earns Rs. 1500. The investment made is:

A.	Rs. 5640
B.	Rs. 5760
C.	Rs. 7500
D.	Rs. 9600

Answer: Option B

Explanation:

To earn Rs.	50	, investment = Rs. 64.
	3

To earn Rs. 1500, investment = Rs.		64 x	3	x 1500		= Rs. 5760.
			50

12.

A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. The market value of each share is:

A.	Rs. 12
B.	Rs. 15
C.	Rs. 18
D.	Rs. 21

Answer: Option B

Explanation:

Dividend on Rs. 20 = Rs.		9	x 20		= Rs.	9	.
		100				5

Rs. 12 is an income on Rs. 100.

Rs.	9	is an income on Rs.		100	x	9		= Rs. 15.
	5			12		5

13.

Which is better investment: 11% stock at 143 or 9 1-div-1by4 % stock at 117?

A.	11% stock at 143
B.	9 % stock at 117
C.	Both are equally good
D.	Cannot be compared, as the total amount of investment is not given.

Answer: Option B

Explanation:

Let investment in each case be Rs. (143 x 117).

Income in 1^st case = Rs.		11	x 143 x 117		= Rs. 1287.
		143

Income in 2^nd case = Rs.		39	x 143 x 117		= Rs. 1394.25
		4 x 117

Clearly, 9	3	% stock at 117 is better.
	4

14.

A man bought 20 shares of Rs. 50 at 5 discount, the rate of dividend being 13 1-div-1by2 . The rate of interest obtained is:

A.	12 1/2 %
B.	13 1/2 %
C.	15%
D.	16 2/3 %

Answer: Option C

Explanation:

Investment = Rs. [20 x (50 - 5)] = Rs. 900.

Face value = Rs. (50 x 20) = Rs. 1000.

Dividend = Rs.		27	x	1000		= Rs. 135.
		2		100

Interest obtained =		135	x 100	%	= 15%
		900

15.

In order to obtain an income of Rs. 650 from 10% stock at Rs. 96, one must make an investment of:

A.	Rs. 3100
B.	Rs. 6240
C.	Rs. 6500
D.	Rs. 9600

Answer: Option B

Explanation:

To obtain Rs. 10, investment = Rs. 96.

To obtain Rs. 650, investment = Rs.		96	x 650		= Rs. 6240.
		10

Stocks and Shares - General Questions (2)

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