OP Malhotra Shares and Dividends Exe-3 B for ICSE Class-10 Maths S Chand Solutions . We Provide Step by Step Answer of Exe-3 B Shares and Dividends of S Chand OP Malhotra Maths as council guideline . Visit official Website CISCE for detail information about ICSE Board Class-10.
Exe-3 B Shares and Dividends for ICSE Class-10 Maths
OP Malhotra S Chand Solutions Ch-3
| Board | ICSE |
| Publications | S Chand |
| Subject | Maths |
| Class | 10th |
| writer | OP Malhotra |
| Book Name | ……….. |
| Topics | Solutions of Exe-3 B Questions |
| Edition | 2022-2023 |
OP Malhotra S Chand Solutions Ch-3
(Exe-3 B Shares and Dividends for ICSE Class-10 Maths)
Ques:-1 Find the number of shares that can be bought and the income obtained by investing:
(i) Rs. 50 in (Rs. 1) shares at Rs. 1.25 paying 8%.
(ii) Rs. 240 in (Rs. 5) shares at Rs. 8 paying 9%.
Answer
(i) Cost of bought (Re. 1) shares at Rs. 1.25 = Rs 50
No of bought Shares = 50 / 1.25 = 40 Shares.
Nominal Value of Investment = 40 Shares X Re. 1 = Rs. 40
Income obtained by Investing = 40 x 8 / 100 = Rs. 3.20.
(ii) Cost of bought (Rs. 5) shares at Rs. 8 = Rs 240
No of bought Shares = 240 / 8 = 30 Shares.
Nominal Value of Investment = 30 Shares X Rs. 5 = Rs. 150
Income obtained by Investing = 150 x 9 / 100 = Rs. 13.50.
Ques:-2 A man bought 160 (Rs. 5) shares for Rs. 360. At what price did the shares stand? At what premium or discount were they quoted?
Answer
A man bought 160 (Rs. 5) shares for Rs 360.
Price of the Shares Stand = 360 / 160 = Rs. 2.25
Discount Rate per share = Rs. 5 – Rs. 2.25 = Rs. 2.25
Ques:-3 A man sold 600 (Rs. 1) shares for Rs. 750. At what price did the shares stand? At what premium or discount were they quoted?
Answer
A man bought 600 (Rs. 1) shares for Rs 750.
Price of the Shares Stand = 750 / 600 = Rs. 1.25
Premium Rate per Share = Rs. 1.25 – Rs. 1 = Rs. 0.25
Ques:-4 A man buys 200 ten rupee shares at Rs. 12.50 each and receives a divided of 8 %. Find the amount invested by him and dividend receive by him in cash.
Answer
Cost of bought 200 (₹ 10) shares at ₹ 12.50 each
Cost of bought 200 shares = 200 x ₹ 12.50 = ₹ 2,500.
Nominal value of investment = 200 shares x ₹ 10 = ₹ 2,000.
The dividend received in cash = ₹ 2,000 x 8/100 = ₹ 160.
Ques:-5 A man bought 500 shares, each of face value Rs. 10 of a certain business concern, and during the first year after purchase received Rs. 400 as dividend on his shares. Find the rate of dividend on his shares.
Answer
Face value of bought 500 shares = 500 x ₹ 10 = ₹ 5,000
Dividend received on bought 500 shares = ₹ 400
The rate of dividend received = ₹ 400 x 100 / 5000 = 8%.
Ques:-6 By purchasing Rs. 25 shares for Rs. 40 each a man gets 4 % profit on his investment. What rate percent is the company paying? What is his dividend if he buys 60 shares?
Answer
Purchasing ₹ 25 shares for ₹ 40 each and gets 4% profit on his investment.
Profit (Dividend) on 1 shares = ₹ 25 x 4 / 100 = Rs. 1.60.
The paying rate = ₹ 1.60 x 100 / ₹ 1.60 = 6.4%.
Dividend on 60 shares = 60 x ₹ 1.60 = ₹ 96.
Ques:-7 Mukul invests Rs. 9000 in a company paying a dividend of 6% per annum when a share of face value 100 stands at Rs. 150. What is his annual income? He sells 50 % of his shares when the price rises to Rs. 200. What is his gain on this transaction?
Answer
Cost of bought (₹ 100) shares at ₹ 150 = ₹ 9,000
No. of bought shares = ₹9,000 / ₹500 = 60 Shares
Nominal value of investment = 60 shares x ₹ 100 = ₹ 6,000
The income obtained by investing = ₹ 6,000 x 6/100 = ₹ 360
Cost of sale of 50% shares = 30 shares x ₹ 150 = ₹ 4,500
Selling price of 50% shares = 30 shares x ₹ 200 = ₹ 6,000
Gain on sale of 50% shares = S.P. – C.P. = 6,000 – 4,500 = ₹ 1,500.
Ques:-8 By investing Rs. 7500 in a company paying 10% dividend, an income of Rs. 500 is received. What price is paid for each Rs. 100 share?
Answer
Nominal value of shares = Dividend on shares X 100 / Rate of dividend = ₹ 500 X 100/10 = ₹ 5,000
No. of shares purchased = Nominal value of shares / Face Value per share = ₹ 5,000 / 100 = 50 Shares
Cost of 50 shares = ₹ 7,500
Price paid per share to the company = ₹ 7,500 / 50 = ₹ 150.
Ques:-9 Arun owns 560 shares of a company. The face value of each share is Rs. 25. The company declares a dividend of 9%. Calculate: (i) the dividend Arun would receive, and
(ii) the rate of interest, on his investment. Considering that Arun bought these shares @Rs. 30 per share in the market.
Answer
(i) Nominal value of shares = No. of shares X Nominal value per share = 560 X ₹ 25 = ₹ 14,000
Dividend on shares = Nominal value of shares X Rate of dividend / 100 = 14,000 X 9 / 100 = ₹ 1,260
(ii) If Arun bought these 560 shares @ ₹ 30 per share in the market.
Cost of investment = 560 shares x ₹ 30 = ₹ 16,800
Income on investment = ₹ 1,260
Interest on investment = 1,260 x 100/16,800 = = 7 1/2 %.
Ques:-10 What sum should Ashok invest in Rs 25 shares selling at Rs 36 to obtain an income of Rs. 720, if the dividend declared is 12%. Also find (i) the number of shares bought by Ashok
(ii) the percentage return on his investment.
Answer
Nominal value of shares = Dividend on shares X 100 / Rate of dividend = 720 x 100 / 12 = = ₹ 6,000
No. of shares purchased = Nominal value of shares / Face value per share = 6,000 / 25 = 240 shares
Sum paid for investment = 240 shares x ₹ 36 = ₹ 8,640
Return on investment = Annual income from shares X 100/ Cost of Investment = 720 X 100 / 8,640 = 8.33%
Ques:-11 Mr. Sharma has 60 shares of nominal value of Rs. 100 and he 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, paying 18% dividend annually. Calculate:
(i) the sale proceeds
(ii) the number of shares he buys
(iii) the annual dividend from these shares.
Answer
(i) Sales proceeds of 60 shares = Nominal value of 60 shares + 60% Premium = ( 60 x 100 ) + 60% of ₹ 6,000 = 6,000 + 3,600 = ₹ 9,600.
(ii) Rate per new share = ₹ 50 – 4% Discount 0f ₹ 50 = 50 – 2 = ₹ 48
No. of purchased new shares = ₹ 9,600 / 48 = 200 shares
(iii) Nominal value of shares = No. of shares X Nominal value per share = 200 X ₹ 50 = ₹ 10,000
Annual dividend on shares = Nominal value of shares X Rate of dividend / 100 = 10,000 X 18 / 100 = ₹ 1,800.
Ques:-12 A man invests a sum of money in Rs. 100 shares, paying 15% dividend, quoted at 20% premium. If his annual dividend is Rs. 540, calculate (i) his total investment,
(ii) the rate of return of his investment.
Answer
Nominal value of shares = Dividend on shares X 100 / Rate of dividend = ₹ 540 X 100 / 15 = ₹ 3,600
(i) Cost of total investment = Nominal value of shares + 20% Premium = ₹ 3,600 + 20% of ₹ 3,600 = 3,600 + 720 = ₹ 4,320.
(ii) Rate of return on investment = Annual dividend on shares X 100 Cost of Investment = 540 X 100 / 4,320 = 12.5%
Ques:-13 A lady holds 1800 hundred rupee shares of a company that pays 15% dividend annually. Calculate her annual dividend. If she had bought these shares at 40% premium, what percentage return would she have got on her investment? Give your answer to the nearest integer.
Answer
Nominal value of shares = No. of shares X Nominal value per share = 1,800X ₹ 100 = ₹ 1,80,000
Annual dividend on shares = Nominal value of shares X Rate of dividend / 100 = 1,80,000 X 15 / 100 = ₹ 27,000.
Cost of total investment = Nominal value of shares + 40% Premium = ₹ 1,80,000 + 40% of ₹ 1,80,000 = 1,80,000 + 72,000 = ₹ 2,52,000
Rate of return on investment = Annual dividend on shares X 100 / Cost of Investment = 27,000 X 100 / 2,52,000 = 10.71% = 11% ( to the nearest integer ).
Ques:-14 A man invests Rs. 11200 in a company paying 6% dividend when its Rs. 100 share can be bought for Rs. 140. Find (i) his annual income.
(ii) the percentage income on his investment.
Answer
(i) Cost of bought (₹ 100) shares at ₹ 140 = ₹ 11,200
No. of bought shares = ₹ 11,200 / ₹ 140 = 80 Shares
Nominal value of investment = 80 shares x ₹ 100 = ₹ 8,000
∴ The income obtained by investing = ₹ 8,000 X 6 / 100 = ₹ 480
(ii) Rate of return on investment = Annual dividend on shares X 100 / Cost of Investment = 480 X 100 / 11,200 = 4 2/7%.
Ques:-15 A company with 10000 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 would 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 had paid for each share.
Answer
(i) Nominal value of shares in the company = No. of shares X Nominal value per share = 10,000 X ₹ 100 = ₹ 10,00,000
∴ Annual dividend paid by the company = Nominal value of shares X Rate of dividend / 100
= 10,00,000 X 5 / 100 = ₹ 50,000
(ii) Nominal value of 72 shares = No. of shares X Nominal value per share = 72 X ₹ 100 = ₹ 7,200
∴ Annual income of a man on 72 shares = Nominal value of shares X Rate of dividend / 100 = 7,200 X 5100 = ₹ 360
(iii) Income on investment at 4% = 7,200 X 4 / 100 = 288
Price paid for each share = Annual dividend on shares X 100 / Income of Investment = 360 X 100 / 288 = ₹ 125.
Ques:-16 A man invests Rs. 1680 in buying shares of nominal value of Rs. 24 and selling at 12% premium. The dividend on the shares is 15% per annum. (i) Calculate the number of shares he buys.
(ii) Calculate the dividend he receives annually.
Answer
(i) Cost of investment per share = Nominal value of shares + 12% Premium = ₹ 24 + 12% of ₹ 24 = 24 + 2.88 = ₹ 26.88
Cost of total investment = ₹ 1,680
No. of purchased shares = ₹ 1,680 / 26.88 = 62.5 Shares
(ii) Nominal value of 62.5 shares = No. of shares X Nominal value per share = 62.5 X ₹ 24 = ₹ 1,500
∴ Annual dividend received on shares = Nominal value of shares X Rate of dividend / 100 = 1,500 X 15 / 100 = ₹ 225.
Ques:-17 A man invests Rs. 7425 on buying shares of face value of Rs. 90 each at a premium of 10% in a company. If he earns Rs. 1350 as dividend at the end of the year, find (i) the number of shares he has in the company.
(ii) the dividend percentage per share that he received.
Answer
(i) Cost of investment per share = Face value per shares + 10% Premium = = ₹ 90 + 10% of ₹ 90 = = 90 + 9 = ₹ 99
Cost of total investment = ₹ 7,425
No. of purchased shares = ₹ 7,425 / 99 = 75 shares
(ii) Nominal value of 75 shares = No. of shares X Nominal value per share = 75 X ₹ 90 = ₹ 6,750
Dividend percentage per share = Annual dividend on shares X 100 / Nominal Value = 1,350 X 100 / 6,750 = 20%.
Ques:-18 Abhishek sold a certain number of shares of Rs. 20 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. 120, find the number of shares sold by him?
Answer
Let, Abhishek sell X shares.
Selling price of X shares = X x ₹ 18 = 18X
Face value of X shares = X x ₹ 20 = 20X
Dividend on X shares = 8% of 20X = 20X x 8 / 100 = 8X/5
Now, Rate per new share = ₹ 10 + 50% Premium = 10 + 5 = 15
No. of purchased new shares = Sale Proceeds / Rate per new share = 18X/15 = 6X/5
Nominal value of purchased new shares = 6X/5 x 10 = 12X
Dividend on purchased new shares = 12% of 12X = 12X x 12/100 = 36X/25
Change in annual income = ₹ 120
8X/5 − 36X/25 = 120 ⇒ X = 750
No. of shares sold by Abhishek = X = 750 shares
Ques:-19 A person invested Rs. 8000 and Rs. 10000 in buying shares of two companies which later on declared dividends of 12% and 8% respectively. He collects the dividends and sells out his shares at a loss of 2% and 3% respectively. Find his total earning from the above transaction.
Answer
Dividend received = 12% of ₹ 8,000 + 8% of ₹ 10,000 = 960 + 800 = ₹ 1,760
Loss on sale of shares=2% of ₹8,000 + 3% of ₹ 10,000 = 160 + 300 = ₹ 460
∴Total earning = Dividend received – Loss on sale of shares = 1,760 – 460 = ₹ 1,300
Ques:-20 A person invested 20%, 30% and 25% of his saving in buying shares of three different companies A, B and C, which declared dividends of 10%, 12% and 15% respectively. If his total income on account of dividends be Rs. 2337.50, find his saving and the amount which he invested in buying shares of each company.
Answer
Let, Total saving be X.
Dividend received = 10% of (20% of X) + 12% of (30% of X) + 15% of (25% of X)
⇒ 2,337.50 = X/50 + 9X/250 + 3X/80 ⇒ X = 25000
Total saving = X = ₹ 25,000
Investment in company ‘A’ = 20% of ₹ 25,000 = ₹ 5,000
Investment in company ‘B’ = 30% of ₹ 25,000 = ₹ 7,500
Investment in company ‘C’ = 25% of ₹ 25,000 = ₹ 6,250
— : End of Shares and Dividends OP Malhotra S Chand Solutions :–
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