[3 marks sum]

Question 13 Marks

Ajay owns 560 shares of a company. The face value of each share is Rs. 25. The company declares a dividend of 9%. Calculate:
(i) The dividend that Ajay will get.
(ii) The rate of interest on his investment, if Ajay had paid Rs. 30 for each share.

Answer

No . of shares = 560
N.V. of one share = ₹ 25
Rate of dividend = 9%
(i) Dividend = No. of shares x N.V. x Rate of divdend.
= 560 x 25 x $\frac{9}{100}$
= ₹ 1,260
(ii) Investment = No. of shares x M.V.
= 560 x 30
= ₹ 16,800
∴ Rate of interest on investment = $\frac{\text { Dividend }}{\text { Investment }} \times 100$
$=\frac{1,260}{16,800} \times 100$
$=7.5 \%$

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Question 23 Marks

Which in better investment: 7% Rs. 100 shares at Rs.120 or 8% Rs. 10 shares at Rs. 13.50.

Answer

Case I.
Income on ₹120 = 7% of ₹ 100
$=\frac{7 \times 100}{100}$
= ₹ 7
So Income on ₹ 1 = ₹ $\frac{7}{120}$ = ₹ 0.058
Case II.
Income on ₹ 13·50 = 8% of ₹ 10
$=\frac{8 \times 10}{100}$
= ₹ $\frac{8}{10}$
So Income on ₹ 1
= ₹

$\frac{\frac{8}{10}}{13 \cdot 50}$
= ₹ 0.059
We find that investment in the second case os better than investment in the first case.

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Question 33 Marks

A man invested Rs 45,000 in 15% Rs 100 shares quoted at Rs 125. When the market value of these shares rose to Rs 140, he sold some shares, just enough to raise Rs 8,400. Calculate:
(1) the number of shares he still holds;
(2) the dividend due to him on these remaining shares.

Answer

(1) Total investment = Rs 45,000
Market value of 1 share = Rs 125
∴ No of shares purchased $=\frac{45000}{125}=360$ shares
Nominal value of 360 shares = Rs 100 × 360= Rs 36,000
Let no. of shares sold = n
Then sale price of 1 share = Rs 140
Total sale price of n shares = Rs 8,400
Then n $=\frac{8400}{140}=60$ shares
The no. of shares he still holds = 360 – 60 = 300
(2) Nominal value of 300 shares = Rs 100 × 300 = Rs 30,000
Dividend% = 15%
Dividend = 15% of Rs 30,000
$=\frac{15}{100} \times 30000=\operatorname{Rs} 4500$

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Mathematics [3 marks sum]

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