Q5 of 55 Page 102

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.

Given, number of shares = 150


FV = Rs. 100


MV = Rs. 120


Dividend = 7%


We know that investment = number of shares × MV


∴ Investment = 150 × 120


= Rs. 18, 000


We know that dividend per share =


∴ Dividend per share =


= Rs. 7


∴ Total dividend received = 150 × 7 = Rs. 1050


We know that rate of return =


∴ Rate of return =


= 5.83%


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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.

 4

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

 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.

 1

Market value of a share is Rs. 200. If the brokerage rate is 0.3% then find the purchase value of the share.