UNIVERSAL EDUCATION

CISCE 2022-23
CLASS X
MATHEMATICS

Ch. 3 – Shares and Dividends

Exercise 3 (A)
1. How much money will be required to buy 400, `12.50 shares at a premium of ` 1?
Sol. Number of shares purchased = 400
Face value =` 12.50
M.V. (` 1 premium) = ` 12.50 + `1 = ` 13.50
∴ Amount of investment = ` 400 ×` 13.50 = ` 5400 Ans.

2. How much money will be required to buy 250, ` 15 shares at a discount of ` 1.50?
Sol. Number of shares = 250
Face value =` 15
M.V. = ` 15 - `1.50 = ` 13.50
∴ Amount of investment = ` 13.50 ×` 250 = ` 3375 Ans.

3. A person buys 120 shares at a nominal value of ` 40 each, which he sells at

` 42.50 each. Find his profit and profit percent.
Sol. No. of shares = 120
Nominal value of each share = ` 40.00
Profit of each share = ` 42.50 – ` 40.00 = ` 2.50
Total profit = 2.50 × 120 = ` 300
Cost price of 120 shares = ` 40 × 120 = ` 4,800

 Profit percent =
300 100
=  6 1 or 6.25 % Ans.
4800 4

4. Find the cost of 85 shares of ` 60 each when quoted at ` 63.25

Sol. No. of shares = 85
Market value of each share = ` 63.25
 Total cost = ` 63.25 × 85 = ` 5, 376.25 Ans.
1
5. A man invests ` 800 in buying ` 5 shares and when they are selling at a premium
of ` 1.15, he sells all the shares. Find his profit and profit per cent.
Sol. Investment = ` 800
In first case face value of each share = ` 5 [cost price]
And market value of each share = ` 5.00 + `1.15 = ` 6.15
Gain on each share of ` 5 = 1.15
1.15  800
 Total gain = = ` 184 Ans.
5
184 100
Gain per cent = = 23% Ans.
800

6. Find the annual income derived from 125, ` 120 shares paying 5% dividend.
Sol. Face value = ` 120
Number of shares purchased = 125
Rate of dividend = 5 %

Annual Income = × F.V × No of shares

5
 His annual income = × 120 × 125
100
= ` 750 Ans.

7. A man invests ` 3,072 in a company paying 5% per annum when its ` 10 share
can be bought for ` 16 each. Find:
(i) his annual income;
(ii) his percentage income on his investment.
Sol. Total investment = ` 3,072
Market value of each share = ` 16
3072
 No. of shares purchased =  192
16
Face value of each share = ` 10
Rate of dividend = 5%

(i) annual income = 192 10 = ` 96

96 100
(ii) income % = = 3.125%
3072

8. A man invests`7,770 in a company paying 5 percent dividend when a share of

nominal value of ` 100 sells at a premium of `5. Find:
(i) the number of shares bought;
(ii) annual income;

2
 (iii) Percentage income.
Sol. Investment = ` 7770
Nominal value of each share = ` 100
Market value = 100 + 5 =` 105
7770
(i)  No. of shares purchased = = 74 Ans.
105
(ii) Rate of dividend = 5%

Annual income = 100 74 = ` 370 Ans.

370  100
(iii) Percentage income = = 4.76% Ans.
7770

9. A man buys ` 50 shares of company paying 12 percent dividend, at a premium of

` 10. Find:
(i) the market value of 320 shares ;
(ii) his annual income ;
(iii) his profit percent.
Sol. (i) Market value of each share = ` 50 + 10
=` 60
 Market value of 320 shares = ` 60 × 320
= ` 19,200 Ans.
(ii) Rate of dividend = 12%
 Annual income = 320 50 = `1,920 Ans.

1920 100
(iii) Profit Percent = = 10% Ans.
19200

10. A man buys of ` 75 shares at a discount of ` 15 of a company paying 20%

dividend. Find :
(i) the market value of 120 shares :
(ii) his annual income ;
(iii) his profit percent.
Sol. (i) Market value of one share = ` 75 – 15 = ` 60
 Market value of 120 shares = ` 60 × 120 = `7200 Ans.
(ii) Rate of dividend = 20%
 Annual income = 120 75 = `1,800 Ans.

1800 100
(iii) Profit percent = = ` 25% Ans.
7200

3
11. A man has 300, `50 shares of a company paying 20% dividend. Find his net
income after paying 3% income tax.
Sol. No. of shares = 300
Rate of dividend = 20%
 Total dividend = 300 50 = ` 3,000

Rate of income tax = 3%

3000  3
Total tax = = ` 90
100
Net income = ` 3000 -`90 = ` 2,910 Ans.

12. A company pays 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.
Sol. No. of shares = 1,000
Face Value of each share = ` 10
Rate of dividend = 15%
Rate of income tax = 22%

Total dividend = 1000 10 = ` 1,500

22
Income tax deducted = ` 1500 × = ` 330
100
Net income = ` 1500 – ` 330 = ` 1170 Ans.

13. A man invests ` 8,800 in buying shares of a company of face value of rupees
hundred each at a premium of 10%. If he earns ` 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 share.
Sol. Investment = ` 8,800
Face value of each share = ` 100
Market value of each share = ` 100 + 10 = ` 110
8800
(i)  No. of shares = = 80 Ans.
110
(ii) Total dividend = ` 1,200
1200 100
dividend percent = = 15% Ans.
8000

4
14. A man invests ` 1,680 in buying shares of nominal value ` 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.
Sol. Investment = ` 1680
Nominal value of each share = ` 24
Market value of each share = ` 24 + 12% of 24
= ` 24 + 2.88 = ` 26.88
Rate of dividend = 15%
1680
(i) No. of shares = = 62.5 Ans.
26.88
15
(ii) Amount of dividend = 24 × 62.5 × = ` 225 Ans.
100

15. By investing ` 7,500 in a company paying 10 percent dividend, an annual

income of ` 500 is received. What price is paid for each of ` 100 share?
Sol. Investment = ` 7,500
Rate of dividend = 10%
Total income = No of shares 100 = ` 500

 No of shares = 50

Market price of each share = = ` 150 Ans.

Exercise 3 (B)
1. A man buys 75, ` 100 shares paying 9 per cent dividend. He buys shares at such
a price that he gets 12 percent of his money. At what price did he buy the
shares?
Sol. No. of shares = 75
Face Value of each share = ` 100
Rate of dividend = 9%
Let the market value of each share = x
Thus, 12% of x = 9% of 100
12x 9 100

100 100
12x = 900
900
x= = 75
12
 Market value of each share = ` 75 Ans.

5
2. By purchasing ` 25 gas shares for ` 40 each, a man gets 4 percent profit on his
investment. What rate percent is the company paying? What is his dividend if
he buys 60 shares?
Sol. Face value of each share = ` 25
Market value of each share = ` 40
Profit = 4% of his investment
Let the rate of dividend = x%
4  40 x  25
 4% of 40 = x % of 25  
100 100
160 = 25x
160 = 25x
160 32
x=   6.4 %
25 5
Rate of dividend = 6.4%

Dividend = 60 25 = ` 96 Ans.

3. Hundred rupee shares of a company are available in the market at a premium of

` 20. Find the rate of dividend given by the company, when a man’s return on
his investment is 15 per cent.
Sol. Face value of each share = ` 100
Market value of each share = ` 120
x % of 100 = 15% of 120
x 15  120
  100 =
100 100
x = 18%
Rate of dividend = 18 %
4. ` 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.
Sol. Face value of each share = ` 50
90
Market value of each share = ` 50  = ` 45
100
Let the rate of dividend = x%
x  50 20  45
 =  50x = 20 × 45
100 100
20  45
x= = 18%
50

6
5. A company declares 8 per cent dividend to the share-holders. If a man receives `
2,840 as his dividend, find the nominal value of his share.
Sol. Rate of dividend = 8%
Total dividend = ` 2,840
Let Nominal value of shares = x
Then 8% of x = ` 2,840
8x
 = 2,840
100
2840 100
x= = 35,500
8
 Nominal value of his shares = ` 35,500 Ans.

6. How much should a man invest in ` 100 shares selling at `110 to obtain an
annual income of ` 1,680, if the dividend declared is 12%?
Sol. Face value of each share = ` 100
Market value of each share = ` 110
Total annual income = ` 1,680
Rate of dividend = 12%
Let total amount of shares = x
Then x × 12% = 1,680
12
x× = 1680
100
1680 100
x= = 14,000
12
No of shares = = 140

 Total amount of shares = 140 × 110 = ` 15,400 Ans.

7. A company declares a dividend of 11.2% to all its share-holders. If its ` 60 share

is available in the market at a premium of 25%, how much should Rakesh invest
in buying the shares of this company in order to have an annual income of`
1,680?
Sol. Face value of each share = ` 60
125
Market value = ` 60 × = ` 75
100
Rate of dividend = 11.2%
Annual income = ` 1,680
Let the face value of shares =` x

7
 dividend = x × 11.2%
x × 11.2% = 1680
112
x 1680
100  10

1680  100  10
X= = 15,000
112
No of shares = = 250

 Investment = 250 × 75= ` 18,750 Ans.

8. A man buys 400, twenty-rupee shares at a premium of ` 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.
Sol. No. of shares = 400
Face value of one share = ` 20
Market value of one share = ` 20 + 4 = 24
Rate of dividend = 12%
(i) Amount invested by the man = ` 24 × 400 = ` 9600 Ans.
12
(ii) Total income = 400× 20 × = ` 960 Ans.
100
960  100
(iii) % return = = 10% Ans.
9600
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.
Sol. No. of shares = 400
Face value of one share = ` 20
80
Market value of one share = ` 20  = `16
100
(i) Amount invested = ` 16 × 400 = `6,400 Ans.
(ii) x % of 20 = 12 % of 16
 Rate of dividend = = 9.6% Ans.

10. A company with 10,000 shares of ` 100 each, declares an annual dividend of 5%.
(i) What is the total amount of dividend paid by the company?
8
 (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.
Sol. No. of shares = 10,000
Face value of each share = 100
Rate of dividend = 5%
(i)  Amount of dividend = 10000× 100 × = ` 50,000

5
(ii) Annual income on 72 shares = 72  100  = ` 360 Ans.
100
(iii) 5 % of 100 = 4 % of M.V

M.V = = `125 Ans.

11. A lady holds 1800, ` 100 shares of a company that pays 15% dividend annually.
Calculate her annual dividend. If she had bought these shares at 40% premium,
what is the return she gets as percent on her investment?
Give your answer to nearest integer.
Sol. No. of share = 1800
Face value of each share = ` 100
Rate of dividend = 15%
Market value of each share =` 140

Annual dividend =1800 × 100 × = `27,000 Ans.

Total investment = ` 140 × 1800 = ` 2,52,000

27,000 100
And percent on her return = = 10.7143%
2,52,000

= 11% (to the nearest integer) Ans.

12. A man invests `11,200 in a company paying 6 percent per annum when its ` 100
shares can be bought for ` 140 find:
(i) his annual dividend.
(ii) his percentage return on his investment.
Sol. Investment = ` 11,200
Rate of dividend = 6%
Market value of a share = ` 140
No of shares = = 80

9
 6
(i) Total dividend = ` 80 × 100 × =`480
100
480  100
(ii) Rate of return = = 4.2857 = 4.29% (approx.) Ans.
11,200

13. Mr. Sharma has 60 shares of N.V. ` 100 and sells them when they are at a
premium of 60%. He invests the proceeds in shares of nominal value `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.
Sol. (i) No. of shares = 60
Face value of each share = ` 100
Market value = ` 160
 His sale proceed = `160 × 60 = `9,600 Ans.
(ii) In second case:
Nominal value of each share = ` 50
96
Market value = ` 50 × = ` 48
100
Rate of dividend = 18%
9600
No. of shares he purchased = = 200 Ans.
48
(iii) Dividend = 50 × 200 × = `1,800 Ans.

14. A company with 10,000 shares of nominal value of ` 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 bought 90 shares of the company at ` 150 per share. Calculate
the dividend he receives and the percentage of return on his investment.
Sol. (i) No. of shares = 10,000
Nominal value of each share = ` 100
Dividend = 8%
And amount of dividend = 10000× 100 × = 80,000 Ans.

(ii) In second case :

Ramesh bought = 90 shares
Market value of each share = ` 150
 His investment = ` 150 × 90 = ` 13,500
10
 Dividend = 90 × 100 × = `720 Ans.

720  100 1
 Percentage return = =5 % Ans.
13500 3

15. Which is the better investment : 16% ` 100 shares at 80 or 20% ` 100 shares at
120?
Sol. In first case :
Income on ` 80 = ` 16
16 1
and on Re. `1 =  = ` 0.20
80 5
In second case,
Income on ` 120 = ` 20
and on Re. 1 = ` 0.1667 = 0.17 (Approx.)

From above, it is clear that first investment is better. 16% ` 100 at `80. Ans.

16. A man has a choice to invest in hundred-rupee shares of two firms at ` 120 or at
` 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 ` 26,400 with each firm, how much will be the difference
between the annual returns from the two firms ?
Sol. In first case:
Market value of share = ` 120
And dividend = 5%
Income on `120 = `5
5 1
and on `1 = 
120 24
In second case,
Market value of share = ` 132
and dividend = 6%
6 1
Income on Re.` 1 = =`
132 22
(i) It is clear from the above thus second is better. Ans.
(ii) In the first case :
1
Dividend on ` 26,400 = ` 26,400 × = ` 1,100
24
And in second case :

11
 1
Dividend on ` 26400 × = ` 1,200
22
Difference = ` 1,200 – ` 1,100 = ` 100 Ans.

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 ` 21 per share and invested the
proceeds in five-rupee shares paying 4.5 percent per annum at ` 3.50 per share.
Find the annual change in his income.
Sol. In first case:
No. of shares bought = 360
Face value of each share = ` 10
Market value = ` 21
 Selling price of all = ` 21 × 360 = ` 7,560
In second case:
Face value of each share = ` 5
Market value of each share = ` 3.50
 No of shares = = 2160

12
Now, income in first case = 360 × 10 × = ` 432
100
4.5
and income in second case = 2160 × 5 × = ` 486
100
 Difference in his income (Increase)
= ` 486 – ` 432 = `54 Ans.

18. A man sold 400 (` 20) shares of a company paying 5% at ` 18 and invested the
proceeds in (` 10) shares of another company paying 7% at ` 12. How many (`
10) shares did he buy and what was the change in his income?
Sol. In first case:
No. of shares sold = 400
Face value of each share = ` 20
Market value = ` 18
Rate of dividend = 5%
Sale proceed = ` 18 × 400 = ` 7,200
In second case :
Market value of each share = ` 12
Face value of each share = ` 10
Rate of dividend = 7%

12
 7200
No. of shares purchased = = 600 Ans.
12

5
Now, income in first case = 400 × 20 × = ` 400
100
7
and income in second case = 600 × 10 × = ` 420
100
 Increase in income = ` 420 – 400 = ` 20 Ans.

19. Two brothers A and B invest ` 16,000 each in buying shares of two companies. A
buys 3% hundred-rupee shares at `80 and B buys ten-rupees 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.
Sol. A’s investment = ` 16,000
Face value of each share = ` 100
Market value of each share = ` 80
and rate of dividend = 3%
16,000
 No. of shares purchased = = 200
80
3
and amount of dividend = 200 × 100 × = ` 600
100
B’s investment = ` 16,000
Face value of each share = ` 10
No of shares = = 1600
and amount of dividend = ` 600
600
 Rate of dividend = × 100 = 3.75% Ans.
16,000

20. A man invests ` 20,020 in buying shares of nominal value ` 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
Sol. Total investment = ` 20,020
Nominal value of each share = ` 26.
110
 Market rate of each share = 26 ×
100
2860
= = ` 28.60
100
13
 20,020
(i) No. of shares purchased = = 700 Ans.
28,60
(ii)
Rate of dividend = 15% per annum.
15
 Total dividend = 26 × 700 × = ` 2,730 Ans.
100
(iii)
2,730 100
 Rate of interest = = 13.6364 = 13.64% Ans.
20,020

Exercise 3 (C)
1. By investing ` 45,000 in 10% `100 shares, Sharad gets `3,000 as dividend. Find
the market value of each share.
Sol.
Amount of dividend = no of shares × 100 × = `3000

No of shares = 300

 Market value of each share = ` = `150

2. Mrs. Kulkarni invests ` 1,31,040 in buying `100 shares at a discount of 9%. She
sells shares worth ` 72000 at a premium of 10% and the rest at a discount of 5%.
Find her total gain or loss on the whole.
Sol.  Market value of each share = ` 100 - 9 = `91
131040
 Number of share = = 1,440
91
No. of shares worth 72000 = = 720

SP of each share at 10 % premium = 110

 Amount received on selling 720 at 110 each = 79,200
No of shares left = 1440 – 720 = 720
SP of each share at 5 % discount = 95
 Amount received on selling 720 at 95 each = ` 68400
Total amount received = ` 79200 + 68400 = `147,600
 Gain = ` 147,600 – 131,040 = ` 16,560

3. A man invests a certain sum in buying 15% ` 100 shares at 20% premium. Find:
(i) his income from one share.
(ii) the number of shares bought to have an income, from the dividend, ` 6480.
(iii) sum invested.

14
Sol. Face value of each share = ` 100
Market value of each share = ` 100 + 20 = `120
Rate of dividend = 15%
(i) Income from one share = ` 15
6480
(ii) Number of shares when amount of dividend is ` 6480 = ` = 432
15
(iii) Sum invested = 432 × 120 = ` 51,840

4. Gagan invested 80% of his savings in 10% ` 100 shares at 20% premium and the
rest of his savings in 20% ` 50 shares at 20% discount. If his incomes from these
shares is`5,600, calculate:
(i) his investment in shares on the whole.
(ii) the number of shares of first kind that he bought.
(iii) percentage return, on the shares bought, on the whole.
Sol. (i) Total income = ` 5600
Let total investment = ` x
80 4
 In first case: Investment = 80% of x =  x x
100 5
Face value = 100 and market value = 120
1
 Total dividend = 100 × =` x
15
4 54 1
Let investment in second case = x - x x x
5 5 5
Face value = 50 and market value = 40
 Dividend = 50 × =

1 x 4x  3x 7
Total dividend = x  =  x
15 20 60 60
7 5600  60
 x = ` 5600  x = `
60 7
 x = 800 × 60 = ` 48000
 Total investment = ` 48000
48000 4
(ii) No. of shares =  = 320
120 5
(iii) % Return on the whole shares bought
Total income
= × 100
Total Investment

5600 560
= × 100 = %
48000 48
15
 35 2
%  11 %
=
3 3
5. Ashwarya bought 496, ` 100 shares at `132 each. Find.
(i) investment made by her.
(ii) income of Ashwarya from these shares, if the rate of dividend is 7.5%.
(iii) how much extra mush Ashwarya invest in order to increase her income by
` 7,200?
Sol. Number of shares = 496
Market value of each share = ` 132
(i)  Total investment = 496 × 132 = ` 65,472

(ii) Income from these shares = 496 × 100 × = ` 3,720

(iii) New income (increase in income) = ` 7200

Extra investment =

= = ` 1,26,720

6. Gopal has some `100 shares of company A, paying 10% dividend. He sells a
certain number of these shares at a discount of 20% and invests the proceeds in
`100 shares at `60 of company B paying 20% dividend. If his income, from the
shares sold, increases by ` 18,000, find the number of shares sold by Gopal.
Sol. Let number of shares sold = x
Rate of Dividend = 10%
100x  10
Total dividend = = ` 10x
100
Selling price of each share = ` 80
 Sale proceed = `80x
1 4
 Number of shares purchased at ` 60 = 80x  x
60 3
4 80
Dividend = x  20 = ` x
3 3
80 50
Difference in income = ` x - 10x = x
3 3
50
 x = `18000
3
18000  3
x= = 1080
50
 Number of shares sold = 1080

7. A man invests a certain sum of money in 6% hundred-rupee shares at ` 12

16
 premium. When the shares fell to ` 96, he sold out all the shares bought and
invested the proceed in 10%, ten-rupee shares at ` 8. If the change in his income
is ` 540, find the sum invested originally.
Sol. Let investment = ` x
No of shares sold =

Dividend in first case = =

x 6
On selling at` 96, sale proceed = × 96 = x
112 7
New no of shares =

Dividend in second case = =

6x 6x 12x  6x 6x
 Difference in income =  = 
56 112 112 112
6x
  540
112
540  112
x= 10080
6
Investment = ` 10080

8. Mr. Gupta has a choice to invest in ten rupee shares of two firms at ` 13 or at`
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 ` 30, Find how much, in all, does he invest?
Sol. Face value of each share = ` 10
Market value of first firm’s share = ` 13
Market value of second firm’s share = ` 16
Dividend from first firm = 5%
And dividend from a second firm = 6%
(i) Let investment in each firm = ` 13 × 16
13  16 5 80
Income from first firm’s shares = × = = `8
13 10 10
13  16 6 78
and income from second firm’s shares =  = = ` 7.80
16 10 10
∴First firm’s shares are better.
(ii) Difference in income = ` 8.00 – `7.80 = ` 0.20
If difference is ` 0.20 then investment in each firm = ` 13 × 16

17
 13  16  30 13  16  30  100
and if difference is ` 30, then investment = =
0.20 20
Investment = ` 31,200
 Total investment in both firms = ` 31200 × 2 =` 62,400 Ans.

9. Ashok invested ` 26400 in 12% `25 shares of a company. If he receives a

dividend of ` 2475, find the :
(i) No of shares bought
(ii) market value of each share.
Sol. (i) Annual dividend = No of shares × 25 × = 2475

No fo shares =

(ii) market value of each share = = `32

10. A man invested ` 45,000 in 15% `100 shares quoted at ` 125. When the market
value of these shares rose to ` 140, he sold some share, just enough to raise `
8,400. Calculate:
(i) the number of shares he still holds;
(ii) the dividend due to him on these remaining shares.
8,400
Sol. Number of shares sold =  60
140
45,000
Initial shares =  360
125
(i) Number of shares he still holds = 360 – 60 = 300
Number of shares  N.V.  dividend
(ii) Income =
100
300  100  15
= = ` 4,500
100

11. Mr. Tiwari invested ` 29,040 in 15% `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.
Sol. Mr. Tiwari’s investment = ` 29040
Face value of each share = ` 100
Market value of each share = ` 100 + 20 = `120
Rate of dividend = 15%

18
 29040
(i) Number of shares purchased = = 242
120
(ii) Income from investment = 242 × 100 × = `3630

3630  100 25
(iii) Percentage return on his investment =  % = 12.5% Ans.
29040 2

12. A dividend of 12% was declared on ` 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 ` 1,350
Sol. Let the market value be ` x
(i) rate of return × market value = Rate of dividend × Face value
12  150
 x= = ` 180
10
M.V. of each share = ` 180
12  150
(ii) Annual income from one share = 12% of 150 = = ` 18
100
1350
 No. of shares needed = = 75 shares
18
∵ Amount of investment in 75 shares = 75 × `180 = `13500 Ans.

13. Divide ` 50,760 into two parts such that if one part is invested in 8% ` 100
shares at 8% discount and the other in 9% `100 shares at 8% premium, the
annual incomes from both the investments are equal.
Sol. Total investment = ` 50,760
Let first part of investment = x
Then second part investment = ` 50,760 – x
Rate of dividend in first part = 8%
∴ MV of each share in first case = 100 – 8 = ` 92

Rate of dividend in second part = 9%

∴ MV of each share in second case = 100 + 8 = ` 108
But annual income from both part is same:

8x 50760  x
 
92 12
12  8x
 = 50760 – x
92
19
 24 47x
 x + x = 50760   50760
23 23
50760  23
x=
47
= 23 × 1080 = ` 24840
First part = ` 24840 and second part = `50760 – ` 24840 = ` 25920

1
14. Mr. Shameem invested 33 % of his saving in 20% ` 50 shares quoted at `60
3
and the remainder of the savings in 10% `100 shares at `110. If his total income
from these investments is ` 9,200 ; find :
(i) his total savings
(ii) the number of ` 50 shares.
(iii) the number of ` 100 shares.
Sol. Let total investment(savings) = x
1 x
first part of investment = x × 33 %=x =
3 3
x 2x
Then second part of investment = x - =
3 3
Total income from both parts = ` 9200
x 10 2x 10
(i) Now     9200
3 60 3 110
x 2x
  = 9200
18 33
33x  36x 69x
 = 9200  = 9200
18  33 18  33
9200  18  33
x = = 79200
69
 Total investment(savings) = ` 79200

(ii) No of ` 50 shares = = 440 shares

2 1 1
(iii) No. of shares of ` 110 = 79200 ×   52800  = 480 shares
3 110 110

15. Vivek invests ` 4500 in 8% ` 10 shares at ` 15. He sells the shares when the
price rises to ` 30, and invests the proceeds in 12% ` 100 shares at ` 125.
Calculate. (i) the sale proceeds (ii) the number of ` 125 shares he buys. (iii) the
change in his annual income from dividend.
Sol. (i) Investment = ` 4500
20
 M.V = ` 15

Number of shares bought = = 300

Annual income = = ` 240

S.P of 1 share = ` 30
Sale Proceeds = 300 x 30 = ` 9000
1
(ii) no. of share of ` 125 bought = × 9000 = 72
125
 No. of ` 125 shares bought = 72

(iii) New income = 72 × 100 × = ` 864

Increase in income = ` 864 – ` 240 = ` 624

16. Mr. Parekh invested ` 52,000 on ` 100 shares at a discount of ` 20 paying 8%

dividend. At the end of one year he sells the shares at a premium of ` 20. Find (i)
the annual dividend. (ii) The profit earned including his dividend.
Sol. Investment = ` 52000, N.V. of 1 share = ` 100
M.V. of 1 share for 1st year = ` 100 – 20 = ` 80

No. of shares =

8
(i) Annual dividend = × 650 × 100 = ` 5200
100
(ii) S.P. of 1 share = ` 100 + 20 = ` 120
S.P. of 650 shares = ` 120  650 = ` 78000
Profit = S.P. – Investment.
= ` 78000 – ` 52000 = ` 26000
Profit including dividend = ` 26000 + ` 5200 = ` 31200

17. Salman buys 50 shares of face value ` 100 available at ` 132. (i) What is his
investment? (ii) If the dividend is 7.5%, what will be his annual income? (iii) If
he wants to increase his annual income by ` 150, how many extra shares should
he buy?
Sol. F.V.= ` 100
(i) M.V. = ` 132, no. of shares = 50
Investment = no. of shares × M.V.
= 50 × 132 = ` 6600
(ii) Income per share = 7.5% of N.V.
75
= × 100 = ` 7.50
10 × 100
21
  Annual income = 7.5 × 50 = ` 375

(iii) No. of extra shares = = 20

 No. of extra shares = 20

18. Salman invests a sum of money in `50 shares, paying 15% dividend quoted at
20% premium. If his annual dividend is ` 600, calculate: (i) the number of shares
he bought. (ii) his total investment. (iii) the rate of return on his investment.
Sol. Nominal value = ` 50
15
Dividend on 1 share = × 50 = ` 7.50
100
Total Dividend to Salman = ` 600
600 600 × 100
(i) No. of shares Salman bought = = = 80
7.50 750
20
(ii) Premium on 1 share = 50 × = ` 10
100
Market value of 1 share = 50 + 10 = ` 60
Total investment for 80 shares = 80 × 60 = ` 4800
600
(iii) Rate of return = × 100 = 12.5%
4800

19. Rohit invested ` 9,600 on ` 100 shares at `20premium paying 8% dividend.

Rohit sold the shares when the price rose to ` 160. He invested the proceeds
(excluding dividend) in 10% ` 50 shares at ` 40. Find the:
(i) original number of shares. (ii) sale proceeds.
(iii) new number of shares. (iv) change in the two dividends.
Sol. Investment by Rohit = ` 9600
Rate of dividend = 8%
 Market value = ` 100 + 20 = ` 120
9600
(i)  Number of shares = = 80
120
And amount of dividend = 80 × 100 × = ` 640

(ii) Sale proceed = ` 80 × 160 = `12800

12800
(iii) Number of new shares = = 320
40
New Dividend earned = 320 × 50 × = `1600

 Change in income = ` 1600 – `640 = `960 (increase)

22
20. How much should a man invest in ` 50 shares selling at `60 to obtain an income
of `450, if the rate of dividend declared is 10%. Also find his yield percent
to nearest whole number.
Sol. Annual income = no of shares × 50 × = 450

No of shares = = 90

Investment = 90 × 60 = ` 5400

Yield % = × 100 = 8.333% = 8% (nearest whole number)

23