Which is the better investment : 16 % ₹ 100 shares at 80 or 20 % ₹ 100 shares at 120 ?

( i ) 16 % of Rs . 100 shares at 80 means; Market value of 1 share = R s . 80 Nominal value of 1 share = Rs . 100 Dividend = 16 % Income on Rs . 80 = 16 % of Rs . 100 = Rs . 16 Income on Rs . 1 = 16 80 = Rs . 0 . 20 ( ii ) 20 % of Rs . 100 shares at 120 means; Market value of 1 share = Rs . 120 Nominal value of 1 share = Rs . 100 Dividend = 20 % Income on Rs . 120 = 20 % of Rs . 100 = Rs . 20 Income on Rs . 1 = 20 120 = Rs . 0 . 17 Then 16 % Rs . 100 shares at 80 is better investment.

A man sold 400 ( ₹ 20 ) shares of a company, paying 5 % at ₹ 18 and invested the proceeds in ( ₹ 10 ) shares of another company paying 7 % at ₹ 12 . How many ( ₹ 10 ) shares did he buy and what was the change in his income ?

I st case Nominal value of 1 share = Rs . 20 Nominal value of 400 shres = Rs . 20 × 400 = Rs . 8000 Market value of 1 shares = Rs . 18 Market value of 400 shares = Rs . 18 × 400 = Rs . 7200 Dividend % = 5 % Dividend = 5 % of Rs . 8000 = 5 100 × 8000 = Rs . 400 2 nd case Nominal value of 1 share = Rs . 10 Market value of 1 share = Rs . 12 ∴ No, of shares purchased = 7200 12 = 600 shares Nominal value of 600 shares = Rs . 10 × 600 = Rs . 6000 Dividend % = 7 % Dividend = 7 % of Rs . 6000 = 7 100 × 6000 = Rs . 420 Annual change in income Rs . 420 - Rs . 400 = Rs . 20

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10th ICSE

IMPORTANT

Earn 100

A company with $10, 000$ shares of nominal value $₹ 100$ declares an annual dividend of $8 %$ to the share-holders.

Ramesh had bought $90$ shares of the company at $₹ 150$ per share. Calculate the dividend he receives and the percentage of return on his investment.

Important Questions on Shares and Dividends

EASY

10th ICSE

IMPORTANT

Concise Mathematics>Chapter 3 - Shares and Dividends>EXERCISE>Q 15

Which is the better investment

: 16 % ₹ 100

shares at

80

20 % ₹ 100

shares at

120 ?

HARD

10th ICSE

IMPORTANT

Concise Mathematics>Chapter 3 - Shares and Dividends>EXERCISE>Q 16

A man has a choice to invest in hundred-rupee shares of two firms at $₹ 120$ or at $₹ 132$ . The first firm pays a dividend of $5 %$ per annum and the second firm pays a dividend of $6 %$ per annum.

Find: Which company is giving a better return.

EASY

10th ICSE

IMPORTANT

Concise Mathematics>Chapter 3 - Shares and Dividends>EXERCISE>Q 16

If a man invests $₹ 26, 400$ with each firm, how much will be the difference between the annual returns from the two firms?

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10th ICSE

IMPORTANT

Concise Mathematics>Chapter 3 - Shares and Dividends>EXERCISE>Q 17

A man bought

360,

ten-rupee shares of a company, paying

12

percent per annum. He sold the shares when their price rose to

₹ 21

per share and invested the proceeds in five-rupee shares paying $4 \cdot 5$ percent per annum at

₹ 3.50

per share. Find the annual change in his income.

HARD

10th ICSE

IMPORTANT

Concise Mathematics>Chapter 3 - Shares and Dividends>EXERCISE>Q 18

A man sold

400 (₹ 20)

shares of a company, paying

5 %

₹ 18

and invested the proceeds in

(₹ 10)

shares of another company paying

7 %

₹ 12 .

How many

(₹ 10)

shares did he buy and what was the change in his income ?

MEDIUM

10th ICSE

IMPORTANT

Concise Mathematics>Chapter 3 - Shares and Dividends>EXERCISE>Q 19

Two brothers

A

and

B

invest

₹ 16, 000

each in buying shares of two companies. A buys

3 %

hundred-rupee shares at

80

and

B

buys ten-rupee shares at par. If they both receive equal dividend at the end of the year, find the rate percent of the dividend received by

B .

EASY

10th ICSE

IMPORTANT

Concise Mathematics>Chapter 3 - Shares and Dividends>EXERCISE>Q 20

A man invests $₹ 20, 020$ in buying shares of N.V. $₹ 26$ at $10 %$ premium. The dividend on the shares is $15 %$ per annum. Calculate the number of shares he buys.

EASY

10th ICSE

IMPORTANT

Concise Mathematics>Chapter 3 - Shares and Dividends>EXERCISE>Q 20

A man invests $₹ 20, 020$ in buying shares of N.V. $₹ 26$ at $10 %$ premium. The dividend on the shares is $15 %$ per annum. Calculate:

the dividend he receives annually.

A company with 10,000 shares of nominal value ₹100 declares an annual dividend of 8% to the share-holders. Ramesh had bought 90 shares of the company at ₹150 per share. Calculate the dividend he receives and the percentage of return on his investment.

Important Questions on Shares and Dividends

Learn and Prepare for any exam you want !

A company with $10, 000$ shares of nominal value $₹ 100$ declares an annual dividend of $8 %$ to the share-holders.

Ramesh had bought $90$ shares of the company at $₹ 150$ per share. Calculate the dividend he receives and the percentage of return on his investment.