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Math Project

This document contains solutions to 15 math exercises involving calculations related to shares and dividends. In Exercise 3(A), questions 1-13 provide step-by-step solutions for problems involving calculating costs of shares based on nominal value, premiums and discounts. Questions calculate profits, profit percentages and annual incomes from dividend payments. Exercise 3(B) questions 1-4 similarly solve word problems involving share prices, premiums/discounts, dividends and returns on investment. All solutions show the calculations and reasoning clearly in a step-by-step manner.

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Lavish Yadav
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
297 views

Math Project

This document contains solutions to 15 math exercises involving calculations related to shares and dividends. In Exercise 3(A), questions 1-13 provide step-by-step solutions for problems involving calculating costs of shares based on nominal value, premiums and discounts. Questions calculate profits, profit percentages and annual incomes from dividend payments. Exercise 3(B) questions 1-4 similarly solve word problems involving share prices, premiums/discounts, dividends and returns on investment. All solutions show the calculations and reasoning clearly in a step-by-step manner.

Uploaded by

Lavish Yadav
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Class X Chapter 3 – Shares and Dividend Maths

______________________________________________________________________________

EXERCISE- 3 (A)

Question 1:
How much money will be required to buy 200, Rs. 25 shares at a premium of Rs. 2?
Solution 1:
Nominal value of 1 share = Rs. 25
Market value of 1 share = Rs. 25 + Rs. 2 = Rs. 27
No. of shares purchased = 200
Money required to buy 200 shares = Rs. 27 × 200
= Rs. 5,400 Ans.

Question 2:
How much money will be required to buy 125, Rs. 30 shares at a discount of Rs. 3?
Solution 2:
Nominal value of 1 share = Rs. 30
Market value of 1 share = Rs. 30 – Rs. 3 = Rs. 27
No. of shares purchased = 125
Money required to buy 125 shares = Rs. 27 × 125
= Rs. 3,375 Ans

Question 3:
A person buys 120 shares at a nominal value of Rs. 40 each, which he sells at Rs. 42.50 each.
Find his profit and profit per cent.
Solution 3:
Nominal value of 120 shares = Rs. 40 × 120 = Rs. 4,800
Market value of 120 shares = Rs. 42.50 × 120 = Rs. 5,100
His profit = Rs. 5,100 – Rs. 4,800 = Rs. 300 Ans.
300
Profit = 4,800 ×100% = 6.25%

Question 4:
Find the cost of 85 shares of Rs. 60 each when quoted at Rs. 63.25
Solution 4:
Market value of 1 share = Rs. 63.25
Market value of 85 shares = Rs. 63.25 × 85 = Rs. 5,376.25 Ans.
Class X Chapter 3 – Shares and Dividend Maths
______________________________________________________________________________

Question 5:
A man invests Rs. 800 in buying Rs. 5 shares and when they are selling at a premium of Rs.
1.15, he sells all the shares. Find his profit and profit per cent.
Solution 5:
Nominal value of 1 share = Rs. 5
Market value 1 share = Rs. 5 + Rs. 1.15 = Rs. 6.15
Total money invested = Rs. 800
800
∴ No of shares purchased = 5 = 160
Market value of 160 shares = 160 × 6.15 = Rs. 984
His profit = Rs. 984 – Rs. 800 = Rs. 184 Ans.
184
Profit = 800 ×100% = 23%

Question 6:
Find the annual income derived from 250, Rs. 60 shares paying 5% dividend.
Solution 6:
Nominal value of 1 share = Rs. 60
Nominal value 250 shares = Rs. 60 × 250 = Rs. 15,000
5
Dividend = 5% of Rs. 15,000 = 100 ×15,000 = 𝑅𝑠. 750

Question 7:
A man invests Rs. 3,072 in a company paying 5% per annum, when its Rs. 10 share can be
bought for Rs. 16 each. Find:
(i) His annual income
(ii) his percentage income on his investment
Solution 7:
Market value of 1 share = Rs. 16
Nominal value of 1share = Rs. 10
Money invested = Rs. 3,072
3072
∴ No of shares purchased = 16 = 192
Nominal value of 192 shares = 10 × 192 = Rs. 1,920
Annual income = 5% of Rs. 1,920
5
= 100 ×1,920
= Rs. 96
96 1
Income% = 3,072 ×100% = 3.125% = 3 8 %
Class X Chapter 3 – Shares and Dividend Maths
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Question 8:
A man invests Rs. 7,770 in a company paying 5 per cent dividend when a share of nominal value
of Rs. 100 sells at a premium of Rs. 5 Find:
(i) the number of shares bought;
(ii) annual income
(iii) percentage income
Solution 8:
Total money invested = Rs. 7,770
Nominal value of 1 share = Rs. 100
Market value of 1 share = Rs. 100 + Rs. 5 = Rs. 105
7770
∴ No of shares purchased = 105 = 74
Nominal value of 74 shares = 74 × 100 = Rs. 7,400
Annual income = 5% of Rs. 7,400
5
= 100 ×7,400
= Rs. 370
370
Income% = 7,770 ×100% = 4.76%

Question 9:
A man buys Rs. 50 shares of a company, paying 12 per cent dividend, at a premium of Rs. 10.
Find:
(i) the market value of 320 shares.
(ii) his annual income;
(iii) his profit percent.
Solution 9:
Nominal value of 1 share = Rs. 50
Market value of 1 share = Rs. 50 + Rs. 10 = Rs. 60
Market value of 320 shares = 320 × 60 = Rs. 19,200
Nominal value of 320 shares = 320 × 50 = Rs. 16,000
Annual income = 12% of Rs. 16,000
12
= 100 ×16,000
= Rs. 1,920
1,920
Profit % = ×100% = 10%
19,200

Question 10:
A man buys Rs. 75 shares at a discount of Rs. 15 of a company paying 20% dividend find:
(i) the market value of 120 shares;
(ii) his annual income;
(iii) his profit percent
Class X Chapter 3 – Shares and Dividend Maths
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Solution 10:
Nominal value of 1 share = Rs. 75
Market value of 1 share = Rs. 75 – Rs. 15 = Rs. 60
Market value of 120 shares = 120 × 60 = Rs. 7,200
Nominal value of 120 shares = 120 × 75 = Rs. 9,000
Annual income = 20% of Rs. 9,000
20
= 100 ×9,000
= Rs. 1,800
1,800
Profit % = 7,200 ×100% = 25%

Question 11:
A man has 300, Rs. 50 shares of a company paying 20% dividend. Find his net income after
paying 3% income tax.
Solution 11:
Nominal value of 1 share = Rs. 50
Nominal value of 300 shares = 300 × 50 = Rs. 15,000
∴ Dividend = 20% of Rs. 15,000
20
= 100 ×15,000 = 𝑅𝑠. 3,000
∴ Income tax paid = 3% of Rs. 3,000
3
= 100 ×3,000 = 𝑅𝑠. 90
His net income = Rs. 3,000 – Rs. 90 = Rs. 2,910 Ans.

Question 12:
A company pays a dividend of 15% on its ten-rupee shares from which it deducts income tax at
the rate of 22%. Find the annual income of a man who owns one thousand shares of this
company.
Solution 12:
Nominal value of 1 share = Rs. 10
Nominal value of 1000 shares = 1000 × 10 = Rs. 10,000
∴ Dividend = 15 % of Rs. 10,000
15
= 100 ×10,000 = 𝑅𝑠. 1,500
∴ Income tax paid = 22 % of Rs. 1,500
22
= 100 ×1,500 = 𝑅𝑠. 330
His net income = Rs. 1,500 – Rs. 330 = Rs. 1,170 Ans.
Class X Chapter 3 – Shares and Dividend Maths
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Question 13:
A man invests Rs. 8,800 in buying shares of a company of face value of rupees hundred each at
a premium of 10%. If he earns Rs. 1,200 at the end of the year as dividend, find:
(i) the number of shares he has in the company.
(ii) the dividend percent per shares.
Solution 13:
Total investment = Rs. 8,800
Nominal value of 1 share = Rs. 100
Market value of 1 share = Rs. 110
8800
∴ No of shares purchased = 110 = 80
Nominal value of 80 shares = 80 × 100 = Rs. 8,000
Let dividend % = y %
Then y% of Rs. 8,000 = Rs. 1,200
𝑦
⟹ 100 ×8,000 = 𝑅𝑠. 1,200
⟹ y = 15%

Question 14:
A man invests Rs. 1,680 in buying shares of nominal value Rs. 24 and selling at 12% premium.
The dividend on the shares is 15% per annum. Calculate:
(i) the number of shares he buys;
(ii) the dividend he receives annually.
Solution 14:
Nominal value of 1 share = Rs. 24
Market value of 1 share= Rs24 + 12% of Rs. 24
= Rs. 24 + Rs. 2.88 = Rs. 26.88
Total investment = Rs1,680
1,680
∴ No of shares purchased = 26.88 = 62.5
Nominal value of 62.5 shares = 62.5 × 24 = Rs. 1,500
Dividend = 15% of Rs. 1,500
= Rs. 225

Question 15:
By investing Rs. 7,500 in a company paying 10 percent dividend, an annual income of Rs. 500
is received. What price is paid for each Rs. 100 shares?
Solution 15:
Total investment = Rs. 7,500
Nominal value of 1 share = Rs. 100
No. of shares purchased = y
Nominal value of y shares = 100 × y = Rs. (100y)
Dividend % = 10%
Class X Chapter 3 – Shares and Dividend Maths
______________________________________________________________________________

Dividend = Rs. 500


∴ 10% of 100y = Rs. 500
10
⟹ 100 ×100𝑦 = 𝑅𝑠. 500
500
⟹y= = 50 shares
10

7,500
∴ Market value of 1 share = = 𝑅𝑠. 150 𝐴𝑛𝑠.
50

EXERCISE: 3 (B)

Question 1:
A man buys 75, Rs. 100 shares of a company which pays 9 per cent dividend. He buys shares at
such a price that he gets 12 per cent of his money. At what price did he buy the shares?
Solution 1:
Nominal value of 1share = Rs. 100
Nominal value of 75 shares = 100 × 75 = Rs. 7,500
Dividend % = 9 %
∴ Dividend = 9% of Rs. 7,500
9
= 100 ×Rs. 7,500 = Rs. 675
Let market price of 1 share = Rs. y
Then market price of 75 shares = Rs. 75y
Profit% on investment = 12 %
12% of 75 y = Rs. 657
12
⟹ 100 ×75y = Rs. 657
⟹ y = Rs. 75

Question 2:
By purchasing Rs. 25 gas shares for Rs. 40 each, a man gets 4 per cent profit on his investment.
What rate per cent is the company paying? What is his dividend if he buys 60 shares?
Solution 2:
Nominal value of 1 share = Rs. 25
Market value of 1 share = Rs. 40
Profit% on investment = 4%
Then profit on 1 share = 4% of Rs. 40 = Rs. 1.60
1.60
∴ Dividend % = 25 ×100% = 6.4% 𝐴𝑛𝑠.
No. of shares purchased = 60
Then dividend on 60 shares = 60 × Rs.1.60 = Rs. 96 Ans.
Class X Chapter 3 – Shares and Dividend Maths
______________________________________________________________________________

Question 3:
Hundred rupee shares of a company are available in the market at a premium of Rs. 20. Find the
rate of dividend given by the company, when a man’s return on his investment is 15 per cent.
Solution 3:
Nominal value of 1 share = Rs. 100
Market value of 1 share = Rs. 100 + Rs. 20 = Rs. 120
Profit% on investment of 1 share =15%
Then profit = 15% of Rs. 120 = Rs. 18
18
∴ Dividend % = 100 ×100% = 18% 𝐴𝑛𝑠.

Question 4:
.Rs. 50 shares of a company are quoted at a discount of 10%. Find the rate of dividend given by
the company, the return on the investment on these shares being 20 per cent.
Solution 4:
Nominal value of 1 share = Rs. 50
Market value of 1 share = Rs. 50 − 10% of Rs. 50
= Rs. 50 – Rs. 5 = Rs. 45
Profit % on investment = 20%
Then profit on 1 share = 20% of Rs. 45 = Rs. 9
9
∴ Dividend % = 50 ×100% = 18% 𝐴𝑛𝑠.

Question 5:
.A company declares 8 per cent dividend to the share holders. If a man receives Rs. 2,840 as his
dividend, find the nominal value of his shares.
Solution 5:
Dividend% = 8%
Dividend = Rs. 2,840
Let nominal value of shares = Rs. y
8% of y = Rs. 2,840
8
⟹ 100 ×y = Rs. 2,840
⟹ y = Rs. 35,500

Question 6:
.How much should a man invest in Rs. 100 shares selling at Rs. 110 to obtain an annual income
of Rs. 1,680, if the dividend declared is 12%?
Solution 6:
Nominal value of 1 share = Rs. 100
Class X Chapter 3 – Shares and Dividend Maths
______________________________________________________________________________

Market value of 1 share = Rs. 110


Let no. of shares purchased = n
Then nominal value of n shares = Rs. (100n)
Dividend% = 12%
Dividend = Rs. 1,680
∴ 12% of 100n = Rs. 1680
12
⟹ 100 ×100𝑛 = 𝑅𝑠. 1,680
1,680 ×100
⟹ n = 12 ×100 = 140
Then market value of 140 shares = 140 × 110 = 15,400 Ans

Question 7:
.A company declares a dividend of 11.2% to all its share-holders. If its Rs. 60 share is available
in the market at a premium of 25%, how much should Rakesh invest, in buying the shares of his
company, in order to have an annual income of Rs. 1,680?
Solution 7:
Nominal value of 1 share = Rs. 60
Market value of 1 share = Rs. 60 + 25% of Rs. 60
= Rs. 60 + Rs. 15 = Rs.75
Let no. of shares purchased = n
Then nominal value of n shares = Rs. (60n)
Dividend% = 11.2%
Dividend = Rs. 1,680
∴ 11.2% of 60n = Rs. 1,680
11.2
⟹ 100 ×60n = Rs. 1,680
1,680 ×100
⟹ n = 11.2 ×60 = 250
Then market value of 250 shares = 250 × 75 = Rs. 18,750 Ans.

Question 8:
.A man buys 400, twenty-rupee shares at a premium of Rs. 4 each and receives a dividend of
12%. Find:
(i) The amount invested by him.
(ii) His total income from the shares.
(iii) Percentage return on his money.
Solution 8:
Nominal value of 1 share = Rs. 20
Market value of 1 share = Rs. 20 + Rs. 4 = Rs. 24
No. of shares purchased = 400
Nominal value of 400 shares = 400 × 20 = Rs. 8,000
(i) Market value of 400 shares= 400 × 24 = Rs. 9,600
Class X Chapter 3 – Shares and Dividend Maths
______________________________________________________________________________

(ii) Dividend% = 12%


Dividend = 12% of Rs. 8,000
12
= 100 ×𝑅𝑠. 8,000 = 𝑅𝑠. 960
income
(iii) Percentage return = investment ×100%
960
= 9,600 ×100% = 10%

Question 9:
.A man buys 400, twenty-rupee shares at a discount of 20% and receives a return of 12% on his
money. Calculate:
(i) The amount invested by him.
(ii) The rate of dividend paid by the company.
Solution 9:
Nominal value of 1 share = Rs. 20
Market value of 1 share = Rs. 20 − 20% of Rs. 20
= Rs. 20 – Rs. 4 = Rs. 16
No. of shares purchased = 400
Nominal value of 400 shares = 400 × 20 = Rs. 8,000
(i) Market value of 400 shares= 400 × 16 = Rs. 6,400
(ii) Return% = 12%
Income = 12% of Rs. 6,400
12
= 100 ×Rs. 6,400 = Rs. 768
income
Dividend % = Nominal value ×100%
768
= 8,000 ×100% = 9.6%

Question 10:
.A company, with 10,000 shares of Rs. 100 each, declares an annual dividend of 5%.
(i) What is the total amount of dividend paid by the company?
(ii) What should be the annual income of a man who has 72 shares in the company?
(iii) If he received only 4% of his investment, find the price he paid for each share.
Solution 10:
Nominal value of 1 share = Rs. 100
Nominal value of 10,000 shares = 10,000 × Rs. 100 = Rs. 10,00,000
(i) Dividend% = 5%
Dividend = 5% of Rs. 10,00,000
5
= 100 ×𝑅𝑠. 10,00,000 = Rs. 50,000

(ii) Nominal value of 72 shares = Rs. 100 × 72 = Rs. 7,200


Dividend = 5% of Rs. 7,200
Class X Chapter 3 – Shares and Dividend Maths
______________________________________________________________________________

5
= 100 ×𝑅𝑠. 7,200 = Rs. 360

(iii) Let market value of 1 share = Rs y


Then market value of 10,000 shares = Rs. (10,000y)
Return% = 4%
4% of Rs. (10,000y) = Rs. 50,000
4
⟹ 100 ×10,000𝑦 = 𝑅𝑠. 50,000
⟹ y = Rs. 125.

Question 11:
.A lady holds 1800, Rs. 100 shares of a company that pays 15% dividend annually. Calculate
her annual dividend. If she had brought thee shares at 40% premium, what is the return she gets
as percent on her investment.
Give your answer to the nearest integer.
Solution 11:
Nominal value of 1 share = Rs. 100
Market value of 1 share = Rs. 100 + 40% of Rs. 100
= Rs. 100 + Rs. 40 = Rs. 140
No. of shares purchased = 1800
Nominal value of 1800 shares = 1800 × 100 = Rs. 1,80,000
Market value of 1800 shares = 1800 × 140 = Rs. 2,52,000
(i) Dividend%= 15%
Dividend = 15% of Rs. 1,80,000
15
= 100 ×𝑅𝑠. 1,80,000 = 𝑅𝑠. 27,000 𝐴𝑛𝑠.
Income
(ii) ∴ Return % = Investment ×100%
27,000
= 2,52,000 ×100% = 10.7% = 11% Ans

Question 12:
.A man invests Rs. 11,200 in a company paying 6 percent per annum when its Rs.100 shares can
be brought for Rs.140. Find:
(i) His annual dividend.
(ii) His percentage return on his investment.
Solution 12:
Nominal value of 1 share = Rs.100
Market value of 1 share = Rs. 140
Total investment = Rs. 11,200
11,200
∴ No of shares purchased = 140 = 80 shares
Then nominal value of 80 shares = 80 × 100 = Rs. 8,000
Class X Chapter 3 – Shares and Dividend Maths
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(i) Dividend%= 6%
Dividend = 6% of Rs. 8,000
6
= 100 ×𝑅𝑠. 8,000 = 𝑅𝑠. 480
(ii)
𝐼𝑛𝑐𝑜𝑚𝑒
Return % = 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 ×100%
480
= 11,200 ×100%
= 4.29%

Question 13:
.Mr. Sharma has 60 shares of nominal value Rs. 100 and decides to sell them when they are at a
premium of 60%. He invests the proceeds in shares of nominal value Rs. 50, quoted at 4%
discount, and paying 18% dividend annually. Calculate:
(i) The sale proceeds;
(ii) The number of shares he buys and
(iii) His annual dividend from the shares.
Solution 13:
1st case
Nominal value of 1 share = Rs. 100
Nominal value of 60 shares = Rs. 100 × 60 = Rs. 6,000
Market value of 1 share = Rs. 100 + 60% of Rs. 100
= Rs. 100 + Rs. 60 = Rs. 160
Market value of 60 shares = Rs. 160 × 60 = Rs. 9,600 Ans.

(ii) Nominal value of 1 share = Rs. 50


Market value of 1 share = Rs. 50 − 4% of Rs. 50
= Rs. 50 – Rs.2 = Rs.48
9,600
∴ No of shares purchased = 48 = 200 𝑠ℎ𝑎𝑟𝑒𝑠 𝐴𝑛𝑠.

(iii) Nominal value of 200 shares = Rs. 50 × 200 = Rs. 10,000


Dividend % = 18%
Dividend = 18% of Rs. 10,000
18
= 100 ×𝑅𝑠. 10,000 = 𝑅𝑠. 1,800 𝐴𝑛𝑠

Question 14:
.A company with 10,000 shares of nominal value Rs.100 declares an annual dividend of 8% to
the share-holders.
(i) Calculate the total amount of dividend paid by the company.
(ii) Ramesh had brought 90 shares of the company at Rs. 150 per share. Calculate the dividend
he receives and the percentage of return on his investment.
Class X Chapter 3 – Shares and Dividend Maths
______________________________________________________________________________

Solution 14:
(i) Nominal value of 1 share = Rs. 100
Nominal value of 10,000 shares = Rs. 100 × 10,000 = Rs. 10,00,000
Dividend% = 8%
Dividend = 8% of Rs. 10,00,000
8
= 100 ×𝑅𝑠. 10,00,000 = 𝑅𝑠. 80,000

(ii) Market value of 90 shares = Rs. 150 × 90 = Rs. 13,500


Nominal value of 90 shares = Rs. 100 × 90 = Rs. 9,000
Dividend = 8% of Rs. 9,000
8
= 100 ×𝑅𝑠. 9,000 = 𝑅𝑠. 720

income
(iii) Return% = investment ×100%
720
= 13,500 ×100%
1
= 5 3 %.

Question 15:
Which is the better investment:
16% Rs. 100 shares at 80 or 20% Rs.100 shares at 120?
Solution 15:
1st case
16% Rs.100 shares at 80 means;
Market value of 1 share = Rs. 80
Nominal value of 1 share = Rs. 100
Dividend = 16%
Income on Rs. 80 = 16% of Rs. 100 = Rs. 16
16
Income on Rs. 1 = 80 = 𝑅𝑠. 0.20

2nd case
20% 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
20
Income on Rs. 1 = 120 = 𝑅𝑠. 0.17
Then 16% Rs. 100 shares at 80 is better investment.
Class X Chapter 3 – Shares and Dividend Maths
______________________________________________________________________________

Question 16:
.A man has a choice to invest in hundred-rupee shares of two firms at Rs. 120 or at Rs. 132. The
first firm pays a dividend of 5% per annum and the second firm pays a dividend of 6% per
annum. Find:
(i) Which company is giving a better return.
(ii) If a man invests Rs. 26,400 with each firm, how much will be the difference between the
annual returns from the two firms.
Solution 16:
(i)
1st firm:
Market value of 1 share = Rs. 120
Nominal value of 1 share = Rs. 100
Dividend = 5%
Income on Rs. 120 = 5% of Rs. 100 = Rs. 5
5
Income on Rs. 1 = 120 = 𝑅𝑠. 0.041

2nd firm
Market value of 1 share = Rs. 132
Nominal value of 1 share= Rs. 100
Dividend = 6%
Income on Rs. 132 = 6% of Rs. 100 = Rs.6
6
Income on Rs. 1 = 132 = 𝑅𝑠. 0.045
Then investment in second company is giving better return Ans.

(ii)
Income on investment of Rs. 26,400 in first firm
5
= 120 ×26,400 = Rs. 1,100
Income on investment of Rs. 26,400 in second firm
6
= 132 ×26,400 = 𝑅𝑠. 1,200
∴ Difference between both returns = Rs. 1,200 – Rs. 1,100
= Rs. 100 Ans

Question 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 Rs. 21 per share and invested the proceeds in five-rupee shares
paying 4.5 per cent per annum at Rs. 3.50 per share. Find the annual changes in his income.
Solution 17:
1st case
Nominal value of 1 share = Rs. 10
Nominal value of 360 shares = Rs. 10 × 360 = Rs. 3,600
Market value of 1 share = Rs. 21
Class X Chapter 3 – Shares and Dividend Maths
______________________________________________________________________________

Market value of 360 shares = Rs. 21 × 360 = Rs. 7,560


Dividend% = 12%
Dividend = 12% of Rs. 3,600
12
= 100 ×3,600 = 𝑅𝑠. 432

2nd case
Nominal value of 1 share = Rs. 5
Market value of 1 share = Rs. 3.50
7,560
∴ No, of shares purchased = 3.50 = 2160 𝑠ℎ𝑎𝑟𝑒𝑠
Nominal value of 2160 shares = Rs. 5 × 2160 = Rs. 10,800
Dividend% = 4.5%
Dividend = 4.5% of Rs. 10,800
4.5
= 100 ×10,800 = 𝑅𝑠. 486
Annual change in income = Rs. 486 – Rs. 432
= Rs. 54 increase Ans.

Question 18:
A man sold 400 (Rs. 20) shares of a company, paying 5% at Rs. 18 and invested the proceeds in
(Rs. 10) shares of another company paying 7% at Rs. 12. How many (Rs. 10) shares did he buy
and what was the change in his income?
Solution 18:
1st case
Nominal value of 1 share = Rs.20
Nominal value of 400 shares = Rs. 20 × 400 = Rs. 8,000
Market value of 1 share = Rs. 18
Market value of 400 shares = Rs. 18 × 400 = Rs. 7,200
Dividend% = 5%
Dividend = 5% of Rs. 8,000
5
= 100 ×8,000 = 𝑅𝑠. 400

2nd case
Nominal value of 1 share = Rs. 10
Market value of 1 share = Rs. 12
7,200
∴ No of shares purchased = 12 = 600 𝑠ℎ𝑎𝑟𝑒𝑠 Ans.
Nominal value of 600 shares = Rs. 10 × 600 = Rs. 6,000
Dividend% = 7%
Dividend = 7% of Rs. 6,000
7
= 100 ×6,000 = 𝑅𝑠. 420
Annual change in income = Rs. 420 – Rs. 400
= Rs. 20 increase Ans.
Class X Chapter 3 – Shares and Dividend Maths
______________________________________________________________________________

Question 19:
Two brothers A and B invest Rs. 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.
Solution 19:
For A
Total investment = Rs. 16,000
Nominal value of 1 share = Rs. 100
Market value of 1 share = Rs. 80
16,000
∴ No of shares purchased = 80 = 200 𝑠ℎ𝑎𝑟𝑒𝑠
Nominal value of 200 shares = Rs. 100 × 200 = Rs. 20,000
Dividend% = 3%
Dividend = 3% of Rs. 20,000
3
= 100 ×𝑅𝑠. 20,000 = 𝑅𝑠. 600

For B
Total investment = Rs. 16,000
Nominal value of 1 share = Rs. 10
Market value of 1 share = Rs. 10
16,000
∴ No of shares purchased = 10 = 1600 𝑠ℎ𝑎𝑟𝑒𝑠
Nominal value of 1600shares = 10 × 1600 = Rs. 16,000
Dividend received by B= Dividend received by A
= Rs. 600
𝐷𝑖𝑣𝑒𝑑𝑒𝑛𝑑
Dividend % = 𝑁𝑜𝑚𝑖𝑛𝑎𝑙 𝑣𝑎𝑙𝑢𝑒 ×100%
600
= 16,000 ×100%
= 3.75%

Question 20:
.A man invests Rs. 20,020 in buying shares of nominal value Rs. 26 at 10% premium. The
dividend on the shares is 15% per annum.
Calculate:
(i) The number of shares he buys.
(ii) The dividend he receives annually.
(iii) The rate of interest he gets on his money.
Solution 20:
Total investment = Rs. 20,020
Nominal value of 1 share = Rs. 26
Market value of 1 share= Rs26 + 10% of Rs. 26
= Rs. 26 + Rs. 2.60 = Rs. 28.60
Class X Chapter 3 – Shares and Dividend Maths
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20,020
∴ No of shares purchased = = 700 𝑠ℎ𝑎𝑟𝑒𝑠 𝐴𝑛𝑠.
28.60

Nominal value of 700 shares = Rs. 26 × 700 = Rs. 18,200


Dividend % = 15%
Dividend = 15% of Rs. 18,200
15
= 100 ×18,200 = 𝑅𝑠. 2,730 𝐴𝑛𝑠
𝑖𝑛𝑐𝑜𝑚𝑒
∴ Income% = 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 ×100%
2,730 150 7
= 20,020 ×100% = % = 13 11 % Ans.
11

Question 21:
Mrs. P. Chandra invested Rs. 19,200 in 15% Rs. 100 shares at 20% discount. After a year, she
sold these shares at Rs. 90 each and invested the proceeds (including her dividend) in 20%, Rs.
50 shares at Rs. 42. Find:
(i) The dividend for the first year.
(ii) Her annual income in the second year.
(iii) The percentage change in her return on her original investment.
Solution 21:
1st case
Nominal value of 1 share = Rs. 100
Market value of 1 share = Rs. 100 − 20% of Rs. 100
= Rs. 100 – Rs. 20 = Rs. 80
Total investment = Rs. 19,200
19,200
∴ No of shares purchased = 80 = 240 𝑠ℎ𝑎𝑟𝑒𝑠
Nominal value of 240 shares = Rs. 100 × 240 = Rs. 24,000
Dividend% = 15%
Dividend = 15% of Rs. 24,000
15
= 100 ×𝑅𝑠. 24,000 = 𝑅𝑠. 3,600
She sold 240 shares in = Rs. 90 × 240 = Rs. 21,600
2nd case
Total investment in 2nd year = Rs. 21,600 + Rs. 3,600
= Rs. 25,200
Nominal value of 1 share = Rs. 50
Market value of 1 share = Rs. 42
25,200
∴ No of shares purchased = 42 = 600 𝑠ℎ𝑎𝑟𝑒𝑠
Nominal value of 600 shares = Rs. 50 × 600 = Rs. 30,000
Dividend% = 20%
Dividend = 20% of Rs. 30,000
20
= 100 ×𝑅𝑠. 30,000 = 𝑅𝑠. 6,000
Annual change in income = Rs. 6,000 – Rs. 3,600
Class X Chapter 3 – Shares and Dividend Maths
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= Rs. 2,400
The percentage change in her return on her original investment
2,400
= 19,200 ×100% = 12.5%

Question 22:
Govind invested Rs. 19,200 in 15% Rs 100 shares at 20% premium. After a year, he sold these
shares at Rs. 140 each and invested the proceeds (including his dividend) in 20%, Rs. 20 shares
at Rs. 16. Find:
(i) The dividend for the first year.
(ii) Her annual income in the second year.
(iii) The percentage change in his return on her original investment.
Solution 22:
1st case
Nominal value of 1 share = Rs. 100
Market value of 1 share = Rs. 100 + 20% of Rs. 100
= Rs. 100 + Rs. 20 = Rs. 120
Total investment = Rs. 19,200
19,200
∴ No of shares purchased = 120 = 160 𝑠ℎ𝑎𝑟𝑒𝑠
Nominal value of 160 shares= Rs100 x 160= Rs16,000
Dividend% = 15%
Dividend = 15% of Rs. 16,000
15
= ×16,000 = Rs. 2,400
100
He sold 160 shares in = Rs. 140 × 160 = Rs. 22,400

2nd case
Total investment in 2nd year = Rs. 22,400 + Rs. 2,400
= Rs. 24,800
Nominal value of 1 share = Rs. 20
Market value of 1 share = Rs. 16
24,800
∴ No of shares purchased = 16 = 1550 𝑠ℎ𝑎𝑟𝑒𝑠
Nominal value of 1,550 shares = Rs. 20 × 1550 = Rs. 31,000
Dividend% = 20%
Dividend = 20% of Rs. 31,000
20
= 100 ×31,000 = 𝑅𝑠. 6,200
Annual change in income = Rs. 6,200 – Rs. 2,400
= Rs. 3,800
The percentage change in his return on his original investment
3,800 475 19
= 19,200 ×100% = 24 % = 19 24 %
Class X Chapter 3 – Shares and Dividend Maths
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EXERCISE 3 (C)

Question 1:
.A man bought Rs. 40 shares at a premium of 40%. Find his income, if he invests Rs. 14,000 in
these shares and receives a dividend at the rate of 8% on the face value of the shares.
Solution 1:
Total investment = Rs. 14,000
Nominal value of 1 share = Rs. 40
Market value of 1 share = Rs. 40 + 40% of Rs. 40
= Rs. 40 + Rs. 16 = Rs. 56
14,000
∴ No of shares purchased = 56 = 250 𝑠ℎ𝑎𝑟𝑒𝑠
Nominal value of 250 shares = Rs. 40 × 250 = Rs. 10,000
Dividend% = 8%
Dividend = 8% of Rs. 10,000
8
= 100 ×10,000 = 𝑅𝑠. 800

Question 2:
.A man bought Rs. 40 shares at a discount of 40%. Find his income, if he invests Rs. 12,000 in
these shares and receives a dividend at the rate of 11% on the face value of the shares.
Solution 2:
Total investment = Rs.12,000
Nominal value of 1 share = Rs.40
Market value of 1 share = Rs. 40 − 40% of Rs. 40
= Rs. 40 – Rs. 16 = Rs. 24
12,000
∴ No of shares purchased = 24 = 500 𝑠ℎ𝑎𝑟𝑒𝑠
Nominal value of 500 shares = Rs. 40 × 500 = Rs. 20,000
Dividend % = 11%
Dividend = 11% of Rs. 20,000
11
= 100 ×20,000 = 𝑅𝑠. 2,200

Question 3:
A sum of rupees 11,880 is invested in Rs. 50 shares available at 12% discount. Find the income,
if a dividend of 12% is given on the shares.
Solution 3:
Total investment = Rs. 11,880
Nominal value of 1 share = Rs. 50
Market value of 1 share = Rs. 50 − 12% of Rs. 50
= Rs. 50 – Rs. 6 = Rs. 44
11,880
∴ No of shares purchased = 44 = 270 𝑠ℎ𝑎𝑟𝑒𝑠
Class X Chapter 3 – Shares and Dividend Maths
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Nominal value of 270 shares = Rs. 50 × 270 = Rs. 13,500


Dividend% = 12%
Dividend = 12% of Rs. 13,500
12
= 100 ×13,500 = 𝑅𝑠. 1,620

Question 4:
Rajat buys Rs. 80 shares at 30% premium in a company paying 18% dividend. Find:
(i) The market value of 150 shares.
(ii) Rajat’s annual income from these shares.
(iii) Rajat’s percentage return from this investment.
Solution 4:
Nominal value of 1 share = Rs. 80
Market value of 1 share = Rs. 80 + 30% of Rs. 80
= Rs. 80 + Rs. 24 = Rs. 104
Market value of 150 shares = Rs. 104 × 150 = Rs. 15,600
Nominal value of 150 shares = Rs. 80 × 150 = Rs. 12,000
Dividend% = 18%
Dividend = 18% of Rs. 12,000
18
= 100 ×12,000 = 𝑅𝑠. 2,160
Income
Income% = Investment × 100%
2,160
= ×100%
15,600
= 13.85%.

Question 5:
Peter invests Rs. 5,625 in a company paying 7% per annum when a share of Rs. 10 stands from
Rs. 12.50. Find Peter’s income from this investment.
If he sells 60% of these shares from Rs. 10 each, find his gain or loss in this transaction.
Solution 5:
(i)
Total investment = Rs. 5,625
Nominal value of 1 share = Rs. 10
Market value of 1 share = Rs. 12.50
5,625
∴ No of shares purchased = 12.50 = 450 𝑠ℎ𝑎𝑟𝑒𝑠
Nominal value of 450 shares = Rs. 10 × 450 = Rs. 4,500
Dividend% = 7%
Dividend = 7% of Rs. 4,500
7
= 100 ×4,500 = 𝑅𝑠. 315
Class X Chapter 3 – Shares and Dividend Maths
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(ii)
No. of shares sold = 60% of 450 = 270
Sale price of 270 shares = Rs10 × 270 = Rs. 2,700
Purchase price of 270 shares= Rs12.50 × 70 = Rs. 3,375
His loss = Rs. 3,375 – Rs. 2,700 = Rs. 675 Ans.

Question 6:
Mrs. Sharma buys 85 shares (par value Rs. 100) at Rs. 150 each.
(i) If the dividend is 6.5%, what will be her annual income?
(ii) If she wants to increase her income by Rs. 260; how much more should she invest?
Solution 6:
Par value of 85 shares = Rs. 100 × 85 = Rs. 8,500
Market value of 85 shares = Rs. 150 × 85 = Rs. 12,750
(i) Dividend% = 6.5%
Dividend = 6.5% of Rs. 8,500
6.5
= 100 ×8,500 = 𝑅𝑠. 552.50 𝐴𝑛𝑠

(ii) Required income = Rs. 552.50 + Rs. 260 = Rs. 812.50


If income is Rs. 552.50,then investment is Rs. 12,750
12,750
If income is Rs. 812.50, then investment is = 552.50 ×812.50
= Rs. 18,750
More investment required = Rs. 18,750 – Rs. 12,750
= Rs. 6,000 Ans.

Question 7:
.A company gives x% dividend on its Rs. 60 shares, whereas the return on the investment in
these shares is (x + 3) %. If the market value of each share is Rs. 50, find the value of x.
Solution 7:
Nominal value of 1 share = Rs. 60
Market value of 1 share = Rs. 50
Dividend% = x%
Return% = (x+3)%
According to question
x% of Rs. 60 = (x+3)% of Rs. 50
𝑥 𝑥+3
⇒ 100 ×𝑅𝑠. 60 = 100 ×𝑅𝑠. 50
⇒ 60x = 50x + 150
⇒ 10x = 150
150
⇒ x = 10 = 15.
Class X Chapter 3 – Shares and Dividend Maths
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Question 8:
.How much should a man invest in Rs. 100 shares selling at Rs. 85 to obtain an annual income
of Rs. 1,800; if the dividend declared is 12%?
Also, find the percentage return on this investment.
Solution 8:
(i)
Nominal value of 1 share = Rs. 100
Market value of 1 share = Rs. 85
Let no. of shares purchased = n
Nominal value of n shares = Rs. (100n)
∴ 12% of Rs(100n) = Rs. 1,800
12
⇒ × 100n = Rs. 1,800
100
1,800 ×100
⇒ n = 12 ×100 = 150 𝑠ℎ𝑎𝑟𝑒𝑠
Market value of 150 shares = Rs. 85 × 150 = Rs. 12,750
(ii)
𝐼𝑛𝑐𝑜𝑚𝑒
Income % = 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 ×100%
1,800
= 12,750 ×100%
= 14.12%.

Question 9:
A dividend of 10% was declared on shares with a face value of Rs. 60. If the rate of return is
12%, calculate:
(i) The market value of the share.
(ii) The amount to be invested to get an annual income of Rs. 1,200.
Solution 9:
(i)
Dividend% = 10%
Face value = Rs. 60
Dividend = 10% of Rs. 60
10
= 100 ×𝑅𝑠. 60 = 𝑅𝑠. 6
Let market value = Rs. y
Return% = 12%
12% of Rs (y) = Rs. 6
12
⇒ 100 ×𝑦 = 𝑅𝑠. 6
⇒ y = Rs. 50
(ii)
When income is Rs. 6, then investment is Rs. 50
When income is Rs. 1,200, then investment
50
= 6 ×𝑅𝑠. 1,200
= Rs. 10,000
Class X Chapter 3 – Shares and Dividend Maths
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Question 10:
.Mr. Gupta has a choice to invest in ten-rupee shares of two firm at Rs. 13 or at Rs. 16. If the
first firm pays 5% dividend and the second firm pays 6% dividend per annum, find :
(i) Which firm is paying better.
(ii) If Mr. Gupta invests equally in both the firms and the difference between the returns from
them is Rs. 30, find how much, in all, does he invest.
Solution 10:
(i)
1st firm
Nominal value of 1 share = Rs. 10
Market value of 1 share = Rs. 13
Dividend% = 5%
Dividend = 5% of Rs. 10 = Rs. 0.50
𝐼𝑛𝑐𝑜𝑚𝑒
∴ Income% = 𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡 ×100%

0.50
= ×100% = 3.846%
13

2nd firm
Nominal value of 1 share = Rs. 10
Market value of 1 share = Rs. 16
Dividend% = 6%
Dividend = 6% of Rs. 10 = Rs. 0.60
𝐼𝑛𝑐𝑜𝑚𝑒
∴ Income% = ×100%
𝐼𝑛𝑣𝑒𝑠𝑡𝑚𝑒𝑛𝑡
0.60
= 16 ×100% = 3.75%
Then first firm is paying better than second firm.

(ii)
Let money invested in each firm= Rs y
For 1st firm
𝑦
∴ No of shares purchased = 13 𝑠ℎ𝑎𝑟𝑒𝑠
𝑦 𝑦
Total dividend = Rs. 0.50 × 13 = 𝑅𝑠. 26

For 2nd firm:


𝑦
∴ No of shares purchased = 16 𝑠ℎ𝑎𝑟𝑒𝑠
𝑦 3𝑦
Total dividend = Rs. 0.60 × 16 = 𝑅𝑠. 80
Given – difference of both dividend = Rs. 30
𝑦 3𝑦
⇒ 26 − 80 = 𝑅𝑠. 30
𝑦
⇒ 1040 = Rs. 30
⇒ y = Rs. 30 × 1040 = Rs. 31,200
Total money invested in both firms = Rs. 31,200 × 2
= Rs. 62,400 Ans.
Class X Chapter 3 – Shares and Dividend Maths
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Question 11:
.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:
(i) The number of shares he still holds;
(ii) The dividend due to him on these remaining shares.
Solution 11:
(i)
Total investment = Rs. 45,000
Market value of 1 share = Rs. 125
45000
∴ No of shares purchased = = 360 𝑠ℎ𝑎𝑟𝑒𝑠
125
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
8,400
Then n = 140 = 60 𝑠ℎ𝑎𝑟𝑒𝑠
The no. of shares he still holds = 360 – 60 = 300

(ii)
Nominal value of 300 shares = Rs. 100 × 300 = Rs. 30,000
Dividend% = 15%
Dividend = 15% of Rs. 30,000
15
= 100 ×Rs. 30,000 = Rs. 4,500

Question 12:
.Mr. Tiwari invested Rs. 29,040 in 15% Rs. 100 shares quoted at a premium of 20%. Calculate:
(i) The number of shares bought by Mr. Tiwari.
(ii) Mr. Tiwari’s income from the investment.
(iii) The percentage return on his investment.
Solution 12:
Total investment = Rs. 29,040
Nominal value of 1 share = Rs. 100
Market value of 1 share = Rs. 100 + 20% of Rs. 100
= Rs. 100 + Rs. 20 = Rs. 120
29,040
∴ No of shares purchased = 120 = 242 𝑠ℎ𝑎𝑟𝑒𝑠
Nominal value of 242 shares = Rs. 100 × 242 = Rs. 24,200
Dividend% = 15%
Dividend = 15% of Rs. 24,200
15
= 100 ×Rs. 24,200 = Rs. 3,630
Class X Chapter 3 – Shares and Dividend Maths
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income
Income % = Investment ×100%
3,630
= 29,040 ×100%
= 12.5%

Question 13:
A dividend of 12% was declared on Rs. 150 shares selling at a certain price. If the rate of return
is 10%, calculate:
(i) The market value of the shares.
(ii) The amount to be invested to obtain an annual dividend of Rs. 1,350.
Solution 13:
(i) Nominal value of 1 share = Rs. 150
Dividend% = 12%
Dividend on 1 share = 12% of Rs. 150
12
= 100 ×𝑅𝑠. 150 = 𝑅𝑠. 18
Let market value of 1 share = Rs y
Return% = 10%
10% of Rs (y) = Rs. 18
10
⇒ 100 ×𝑦 = Rs. 18
⇒ y = Rs. 180

(ii) When dividend is Rs. 18, then investment is Rs. 180


When dividend is Rs. 1,350, then investment
180
= 18 ×𝑅𝑠. 1,350
= Rs. 13,500

Question 14:
.Divide Rs. 50,760 into two parts such that if one part is invested in 8% Rs. 100 shares at 8%
discount and the other in 9% Rs. 100 shares at 8% premium, the incomes from both the
investments are equal.
Solution 14:
Total investment = Rs. 50,760
Let 1st part = Rs. y
2nd part = Rs. (50,760 − y)
For 1st part
Nominal value of 1 share = Rs. 100
Market value of 1 share = Rs. 100 − 8% of Rs. 100
= Rs. 100 – Rs. 8 = Rs. 92
𝑦
∴ No of shares purchased = 92 𝑠ℎ𝑎𝑟𝑒𝑠
Class X Chapter 3 – Shares and Dividend Maths
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Dividend% = 8%
Dividend on 1 share = 8% of Rs. 100 = Rs. 8
𝑦 2𝑦
Total dividend = 92 ×𝑅𝑠. 8 = 𝑅𝑠. 23

For 2nd part


Nominal value of 1 share = Rs. 100
Market value of 1 share = Rs. 100 + 8% of Rs. 100
= Rs. 100 + Rs 8 = Rs. 108
50760 −𝑦
∴ No of shares purchased = 108 𝑠ℎ𝑎𝑟𝑒𝑠
Dividend% = 9%
Dividend on 1 share = 9% of Rs. 100 = Rs. 9
50760 −𝑦 9(50760 −𝑦)
Total dividend = 108 ×𝑅𝑠. 9 = Rs. 108
Given that both dividend are equal
2𝑦 9(50760 −𝑦)
Then Rs. 23 = 𝑅𝑠. 108
⇒ 2y × 108 = 23 (456840 – 9y)
⇒ 216y = 456840 × 23 – 207y
⇒ 423y = 456840 × 23
456840 ×23
⇒y= = 𝑅𝑠. 24,840
423
st
1 part = Rs. 24,840
2nd part = Rs. 50760 – Rs. 24,840 = Rs. 25,920 Ans.

Question 15:
1
Mr. Shameem invested 33 3% of his savings in 20% Rs. 50 shares quoted at Rs. 60 and the
remainder of the savings in 10% Rs. 100 shares quoted at Rs. 110. If his total income from these
investments is Rs. 9,200; Find:
(i) His total savings
(ii) The number of Rs. 50 shares.
(iii) The number of Rs. 100 shares.
Solution 15:
Let his total savings is Rs y
1st case
1 𝑦
His saving = 33 3 % 𝑜𝑓 𝑦 = 𝑅𝑠. 3
Market price of 1 share = Rs. 60
𝑦 𝑦
Then shares purchased = 3 ×60 = 180
Dividend on 1share = 20% of Rs. 50 = Rs. 10
𝑦 𝑦
Total dividend = 180 ×10 = 𝑅𝑠. 18

2nd case
2 2𝑦
His saving = 663 % of y = Rs. 3
Class X Chapter 3 – Shares and Dividend Maths
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Market price of 1share= Rs110


2𝑦 𝑦
Then shares purchased = 3×110 = 165
Dividend on 1share = 10% of Rs. 100 = Rs. 10
𝑦 2𝑦
Total dividend = 165 ×10 = Rs. 33
According to question
Total income = Rs. 9,200
𝑦 2𝑦
⇒ 18 + 33 = 𝑅𝑠. 9,200
23𝑦
⇒ 198 = 𝑅𝑠. 9,200
9,200 ×198
⇒y= = Rs. 79,200 Ans
23
79,200
The number of Rs. 50 share = = 440 Ans.
180
79,200
The number of Rs. 100 share = = 480 𝐴𝑛𝑠.
165

Question 16:
Vivek invests Rs. 4,500 in 8%, Rs.10 shares at Rs. 15. He sells the shares when the price rises
to Rs. 30, and invests the proceeds in 12% Rs. 100 shares at Rs. 125. Calculate:
(i) The sale proceeds
(ii) The number of Rs. 125 shares he buys.
(iii) The changes in his annual income from dividend.
Solution 16:
1st case
(i) Total investment = Rs. 4,500
Market value of 1 share = Rs. 15
4500
∴ No of shares purchased = 15 = 300 𝑠ℎ𝑎𝑟𝑒𝑠
Nominal value of 1 share = Rs. 10
Nominal value of 300 shares = Rs. 10 × 300 = Rs. 3000
Dividend = 8% of Rs. 3,000
8
= ×Rs. 3,000 = Rs. 240
100
Sale price of 1 share = Rs. 30
Total sale price = Rs. 30 × 300 = Rs. 9,000 Ans.
(ii) new market price of 1 share = Rs. 125
9000
∴ No of shares purchased = 125 = 72 𝑠ℎ𝑎𝑟𝑒𝑠 𝐴𝑛𝑠.
(iii) New nominal value of 1 share = Rs. 100
New nominal value of 72 shares = Rs. 100 × 72 = Rs. 7,200
Dividend% = 12%
New dividend = 12% of Rs. 7,200
12
= 100 ×𝑅𝑠. 7,200 = 𝑅𝑠. 864
Change in annual income = Rs. 864 – Rs. 240
= Rs. 624 Ans
Class X Chapter 3 – Shares and Dividend Maths
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Question 17:
.Mr. Parekh invested Rs. 52,000 on Rs. 100 shares at a discount of Rs. 20 paying 8% dividend.
At the end of one year he sells the shares at a premium of Rs. 20. Find:
(i) The annual dividend.
(ii) The profit earned including his dividend
Solution 17:
Rate of dividend = 8%
Investment = Rs. 52000
Market Rate = Rs. 100 − 20 = Rs. 80
52000
No. of shares purchased = 80 = 650
(i) Annual dividend = 650 × 8 = Rs. 5200 Ans.
(ii) On selling, market rate = Rs. 100 + 20 = Rs. 120
⇒ sale price = 650 × 120 = Rs. 78,000
Profit = Rs. 78,000 – Rs. 52,000 = Rs. 26,000
⇒ Total gain = 26000 + 5200 = Rs. 31200 Ans.

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