Q.1. A man purchased 300 shares of the face value of Rs. 100 each from the market at Rs. 800 per share. If a dividend of 24% is declared, find his earning percent on the investment.

A. 2.4%

B. 30%

C. 3%

D. 8%

Sol : Option C
Price of 1 share = Rs. 800. Dividend rate = 24%. ∴ Earning % on investment = (24/800)×100 = 3%.

Q.2. How many shares of market value Rs. 25 can be purchased for Rs. 15,775?

A. 651

B. 621

C. 631

D. 641

Sol : Option C
Number of shares that can be purchased = 15775/25 = 631.

Q.3. A man invested Rs. 45000 when he bought Rs. 100 shares at Rs. 150. If 20% dividend is declared, find his annual income.

A. Rs. 4500

B. Rs. 3000

C. Rs. 5000

D. Rs. 6000

Sol : Option D
His annual income = (4500×20)/150 = Rs.6000

Q.4. A 4% stock yields 5%. The market value of the stock of face value Rs. 100 is

A. 75

B. 133

C. 80

D. 120

Sol : Option C
Market value of the stock = 4/5 × 100 = 80.

Q.5. If annual income from 6% stock at 80 is Rs. 50 more than 7% stock at 120, then the investment is

A. Rs. 3000

B. Rs. 2500

C. Rs. 4500

D. Rs. 5000

Sol : Option A
Let the investment be Rs. x. ∴ (6x/80) - (7x/120) = 50 ⇒ x = Rs.3000

Q.6. A corporation declares an annual dividend of 5%. Arun owns 500 shares (par value Rs. 80). How much dividend will he receive?

A. Rs. 1500

B. Rs. 2000

C. Rs. 1600

D. None of these

Sol : Option B
Dividend he received = 500 × 80 ×(5/100) = Rs. 2000

Q.7. The capital stock of a company is Rs. 500,000 and is divided into 5,000 shares of common stock. If the company pays a dividend of Rs. 64,000, what amount will Dinesh receive for his 50 shares?

A. Rs. 700

B. Rs. 640

C. Rs. 680

D. None of these

Sol : Option B
Income for 5000 shares = Rs. 64000.
∴ Income for 36 shares = (64000/5000)×50 = Rs.640

Q8. To produce an annual income of Rs. 1200 from a 12% stock at 90, the amount of stock required is:

A. Rs. 10800

B. Rs.10000

C. Rs. 14400

D. Rs.16000

Sol : Option B
For an income of Rs. 12, stock needed = 100 For an income of Rs. 1200, stock needed = 100 × (1200/12) = Rs. 10000

Q9. A 9% stock yields 8%. The market value of the stock is:

A. Rs. 72

B. Rs. 116.50

C. Rs. 90

D. Rs.112.50

Sol : Option D
To get Rs. 8, investment = Rs. 100
To get Rs. 9, investment = Rs. (100/8)×9 = Rs. 112.50.
Market value of Rs. 100 stock = Rs. 112.50.

Q10. What yearly income can be earned by investing Rs. 14400 in 15% stock at Rs. 120?

A. Rs. 1800

B. Rs. 1600

C. Rs. 1750

D. Rs. 1850

Sol : Option A
The income would be (14400×15)/120= Rs1800.