Quants 21 - Stocks & Shares

Practice Questions:

Question 1:
The cash realized on selling a 14% stock at Rs. 106.25, brokerage being 1/4% is:
Cash realized = Rs. 106.25 - 0.25 = Rs. 106.

Question 2:

How many shares of market value of Rs. 25 each can be purchased for Rs. 12750, brokerage being 2%?

CP of each share = Rs. 25 + 2% of 25 = 25 + (2/100) * 25 = Rs. 25.50

Number of shares = 12750 / 25.50 = 500.

Question 3:
A man invests in a 16% stock at 128. The interest obtained by him is,
By investing Rs. 128, income derived = Rs. 16
By investing Rs. 100, income derived = Rs. 16/128  * 100 = Rs. 12.5.
So, interest obtained = 12.5%

Question 4:
The income derived from a Rs. 100, 13% stock at Rs. 105 is,
Income on Rs. 100 stock = Rs. 13

Question 5:

A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of dividend be 12%, his annual income is,

Number of shares = 4455/8.25 = 540

Face value = 540 * 10 = 5400

Annual Income = 12/100 * 5400 = Rs. 648

Time to Think:

A man invested Rs. 14,400 in Rs. 100 shares of a company at 20% Premium. If the company declares 5% dividend at the end of the year, then how much does he get?