Self Exam Numerical Ability Stock and Shares

Q2: A company declares 10% dividend. Its Rs 100 share is sold at a premium of Rs 24. Brokerage is 1%. If a person invests Rs 25,000 in this share, how much annual dividend does he get?

Read Solution (Total 2)

Face value, FV = 100
Market value of share MV = 100+24+1 = 125
Number of shares bought = 25000/125 = 200
Annual dividend = number of shares*dividend % of face value
= 200*10/100*100
= Rs.2000
10 years agoHelpfull: Yes(1) No(0)

Purchase price of one share = Face Value + Premium + Brokerage
= 100 + 24 + 100 X 1/100
= 100 + 24 + 1 = 125
No of shares purchased from Rs 25,000 = 25,000/125
= 200
value of Shares = 200 X 100 = 20,000
Dividend = 20,000 X 10/100 = 2000
4 years agoHelpfull: Yes(0) No(0)

Self Other Question

Q1: The average age of 10 students in a class increases by 4.8 months when a boy of age 6 yrs is replaced by a new boy. What is the age of the new boy. Q4. The face value of a share is Rs 100. It is sold at a discount of Rs 5. How many such shares can be bought by investing Rs 38,000?