Q4 of 55 Page 102

Smt. Deshpande purchased shares of FV Rs. 5 at a premium of Rs. 20. How many shares will she get for Rs. 20,000?

We know that if MV > FV, then the share is at premium.


∴ MV = FV + Premium


⇒ MV = 5 + 20


= Rs. 25


We know that investment = number of shares × MV


Given, investment = Rs. 20, 000


∴ Number of shares =


⇒ Number of shares =


= 800


More from this chapter

All 55 →
2

Amol purchased 50 shares of Face Value Rs. 100 when the Market value of the share was Rs. 80. Company had given 20% dividend. Find the rate of return on investment.

 3

Joseph purchased following shares, Find his total investment.

Company A : 200 shares, FV = Rs. 2 Premium = Rs. 18.


Company B : 45 shares, MV = Rs. 500


Company C : 1 share, MV = Rs. 10,540.

 5

Shri Shantilal has purchased 150 shares of FV Rs. 100, for MV of Rs. 120. Company has paid dividend at 7%. Find the rate of return on his investment.

 6

If the face value of both the shares is same, then which investment out of the following is more profitable?

Company A : dividend 16%, MV = Rs. 80, Company B : dividend 20%, MV = Rs. 120.