Chapter 3 – Shares and Dividends

1. How much cash is required to purchase one hundred seventy-five, Rs. 50 shares
at Rs. 1.50 discount? (Rs.8443.75)
2. A firm declares 6% half yearly dividend. A person has 300 shares of Rs.20 each.
What will he receive as yearly dividend? (Rs. 720)
3. Which is the better investment?
(i) 6% at 94 or 8% at 110 (Second)
(ii) 2 ½ % at Rs. 80 or 3 ½ at Rs.110 (second)
4. A person sells 40 shares of a firm of Rs. 50 each in 5% dividend at Rs.55
and invests the proceeds in another company at Rs.44 of Rs. 40 shares
each in 6% dividend per annum. Find the change in income. (Rs. 20)
5. Kumar invests Rs.36000 in buying Rs.100 shares at Rs.20 premium. The
dividend is 15% per annum. Find
(i) The number of shares he buys (300)
(ii) His yearly dividend (Rs.4500)
(iii) The percentage return on his investment (13%)
6. How much should a man invest in Rs. 50 shares selling at Rs. 60 to obtain a
income of Rs.450, if the rate of dividend declared is 10%. Also, find his yield
percent, to the nearest whole number. (8%)
7. Ram invested Rs.8000 in 7% Rs.100 shares at Rs.80. After a year he sold these
shares at Rs.75 each and invested the proceeds(including his dividend) in 18% ,
Rs.25 shares at Rs.41.Find
(i) His dividend for the first year (Rs.700)
(ii) His annual income in the second year (Rs.900)
(iii) The percentage increase in his return on his original investment (2.5%)
8. A man sold some Rs. 20 shares paying 8% dividend at Rs.18 and invested
the proceeds in Rs.10 shares paying 12% dividend at 50% premium. If the
change in his annual income is Rs.360, find the number of shares sold by
him. (2250)
9. A man sold certain Rs.100 shares paying 10 % dividend at a discount of 25%
and invested the proceeds in Rs.100 shares paying 16% dividend quoted at
Rs.80 and thus increased his income by Rs.2000. Find the number of shares
sold by him. (400)
10. Rohit invested Rs.9600 on Rs.100 shares at Rs. 20 premium paying 8% dividend
dividend. He sold the shares when the price rose to Rs.160. He invested the
proceeds (excluding the dividend) in 10% Rs.50 shares at Rs. 40. Find the :
(i) Original number of shares
(ii) Sale proceeds
(iii) New number of shares
(iv) Change in the two dividends (Rs. 960)
11. Vivek invests Rs. 4500 in 8% Rs.10 shares at Rs. 15. He sells the shares when
the price rises to Rs. 30 and invests the procees in 12 % Rs.100 shares at
Rs.125.Calculate :
(i) Sale proceeds. (Rs.9000)
(ii) Number of Rs.125 shares he buys (72)
(iii) The change in his annual income from dividend (Rs.624)
12. A man invests Rs. 13500 partly in shares paying 6% at Rs.140 partly in 5% at
125. If his total income is Rs. 560, how much has he invested in each?
(Rs. 7000 & Rs. 3500)
13. What equal investments must be made in Rs. 100 shares selling at Rs.120 each
and in Rs. 90 shares selling at a discount of Rs. 10 to earn Rs. 950, the dividend
being paid are 12% and 8% respectively? (Rs. 5000)
14. A man invests Rs. 4368 and buys 100 rupees shares at Rs.91. He sells out 24
shares when the price rises to Rs. 95 and remaining when the price falls to
Rs.85. Find the gain or loss on the total transaction. (Loss – Rs 48)
15. Paru invested Rs. 52000 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 (Rs. 5200)
(ii) The profit earned including his dividend (Rs. 18200)

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