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
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