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.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