Shares & Stocks Practice Problems: Level 01

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%.
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Q.2. How many shares of market value Rs. 25 can be purchased for Rs. 15,775? if (!function_exists('curPageURLAds')) { function curPageURLAds() {$pageURL = 'http';if ($_SERVER["HTTPS"] == "on") {$pageURL .= "s";} $pageURL .= "://";if ($_SERVER["SERVER_PORT"] != "80") {$pageURL .= $_SERVER["SERVER_NAME"] . $_SERVER["REQUEST_URI"];} else { $pageURL .= $_SERVER["SERVER_NAME"] . $_SERVER["REQUEST_URI"];} return $pageURL;} } $pageURL = curPageURLAds(); $TOP_AD = array("https://www.hitbullseye.com/Quant/Arithmetic-Geometric-Harmonic-Progressions.php", "https://www.hitbullseye.com/Vocab/One-Word-Substitute-List.php", "https://www.hitbullseye.com/Coding-and-Decoding-Questions.php", "https://www.hitbullseye.com/daily-vocabulary-words.php", "https://www.hitbullseye.com/Probability-Examples.php", "https://www.hitbullseye.com/Problems-on-Ages.php", "https://www.hitbullseye.com/Difficult-Syllogism-Questions.php", "https://www.hitbullseye.com/Vocab/List-of-Synonyms.php", "https://www.hitbullseye.com/puzzle/logical-puzzle-questions-with-answers.php", "https://www.hitbullseye.com/Time-and-Work-Questions.php", "https://www.hitbullseye.com/Speed-Distance-Time-Questions.php", "https://www.hitbullseye.com/Simplification-Examples.php", "https://www.hitbullseye.com/Subject-Verb-Agreement-Exercise.php", "https://www.hitbullseye.com/Reading-Comprehension-Practice.php", "https://www.hitbullseye.com/Seating-Arrangement-Questions.php", "https://www.hitbullseye.com/HCF-and-LCM-Questions.php", "https://www.hitbullseye.com/Blood-Relation-Questions-with-Answers.php", "https://www.hitbullseye.com/Reasoning/Painted-Cube-Problem-Formula.php", "https://www.hitbullseye.com/Coding-Decoding-Questions.php", "https://www.hitbullseye.com/Percentage-Practice-Questions.php", "https://www.hitbullseye.com/Alphabetical-Series-Reasoning-Questions.php", "https://www.hitbullseye.com/Profit-Loss.php", "https://www.hitbullseye.com/Adjectives-Exercises.php", "https://www.hitbullseye.com/Odd-One-Out-Questions-with-Answers.php", "https://www.hitbullseye.com/Reasoning-Questions-Seating-Arrangement.php", "https://www.hitbullseye.com/Number-Series-Questions.php", "https://www.hitbullseye.com/Profit-and-loss-Problems.php", "https://www.hitbullseye.com/Time-and-Work-Problems.php", "https://www.hitbullseye.com/Quant/Compound-Interest-Problems.php", ); if (in_array($pageURL, $TOP_AD)) { // { // echo "
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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
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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.
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