## Chapter 4 - Shares and Dividends Exercise Ex. 4.1

Question 1
Calculate the investment required to buy:
(a) 500 shares of Rs 75 each at a premium of Rs 17.
(b) 315 shares of Rs 60 each at a premium of Rs 12.
(c) 600 shares of Rs 25 each at a discount of Rs 3.
(d) 425 shares of Rs 10 each at a discount of Rs 1.50.
(e) 250 shares of Rs 20 each at par.
(f) 150 shares of Rs 100 each at a premium of 12%.
(g) 220 shares of Rs 75 each at a premium of 15%.
(h) 340 shares of Rs 125 each at a discount of 20%.
(i) 750 shares of Rs 100 each at a discount of 24%.
(j) 116 shares of Rs 125 each at par.
Solution 1 Question 2
Calculate the annual income of the following:
(a) 180 shares of Rs 50 each paying 12% dividend.
(b) 424 shares of Rs 125 each paying 8% dividend.
(c) 60 shares of Rs 100 each available at Rs 75 and paying 5% dividend.
(d) 120 shares of Rs 50 each available at Rs 62 and paying 13% dividend.
Solution 2 Question 3
Calculate the percentage income in the following investments:
(a) Rs 7,225 paying 12% when a Rs 100 share is available at 15% discount.
(b) Rs 7,168 paying 15% when a Rs 80 share is available at 40% premium.
(c) Rs 36,250 in a Rs 125 share paying 8% and available at a premium of Rs 20.
(d) Rs 12,375 in a Rs 75 share paying 4% and available at a discount of Rs 20.
Solution 3 Question 4
Rani has 500 shares of Rs 125 each of a company paying 12% dividend. Find her net income after paying 5% income tax.
Solution 4 Question 5
Yash has 1200 shares of Rs 150 each of 'Honeywell Corporation' paying 18% dividend. Find his net income after paying.
Solution 5 Question 6
Anu has 750 shares of Rs 60 each of 'Tata Infotech' paying 15% dividend. Find her net income after paying 6% income tax.
Solution 6 Question 7
Mahesh bought 600 shares of Rs 50 each of 'Excel Computers'. He sold one third of them when they were at a premium of Rs 20 and the remaining when they were at a discount of Rs 5. Find his gain or loss in the transaction.
Solution 7 Question 8
Divya invested Rs 50,000 in buying shares of Rs 125 each of 'Hitech Technologies'. She sold half of them when they were at a premium of 24% and the remaining half when they were at a discount of 20%. Find her gain or loss in the transaction.
Solution 8 Question 9
Ashutosh invested Rs 58,500 in buying shares of Rs 150 each of 'Van Chemicals', when it was available in the market at a premium of 30%. He sells one third of them at a market rate of Rs 215, one third of them at a market rate of Rs 195 and the rest at Rs 175. Find his loss or gain from the transaction.
Solution 9 ## Chapter 4 - Shares and Dividends Exercise Ex. 4.2

Question 1
Saurav invested 10%, 30% and 40% of his savings in buying shares of 3 different companies A, B and C which declared dividends of 12%, 15% and 16% respectively. If Saurav's total income from dividends is Rs 3,025, find his savings and the amount invested in each company.
Solution 1 Question 2
Amitesh had 400 shares of Rs 100 each of 'Telco' paying a dividend of 12.5%. He sold them at a market price of Rs 125 and invested the proceeds in Rs 50 shares of 'Adani Motors' available in the market at Rs 80 and paying a dividend of 16%. How many shares of Adani Motors did Amitesh buy and what is the change in his annual income?
Solution 2 Question 3
Mr Lele sold 250 shares of Rs 75 each of 'IOCL' paying 8% of dividend at Rs 112. He invested the proceeds in buying Rs 125 shares of HPCL paying 8% of dividend available at Rs 140. Calculate the number of shares of HPCL that Mr Lele bought and the change in his annual income.
Solution 3 Question 4
Rohit had 1000 shares of Rs 125 each of 'New Delhi Times' paying a dividend of 12%. He sold all of them at a market rate of Rs 150 and invested the proceeds in buying Rs 25 shares of BVL available at Rs 60 and paying 20% dividend. How many shares of BVL did Rohit buy and what is the change in his annual income?
Solution 4 Question 5
Mr Lal wants to give a monthly scholarship of Rs 225 to a poor student. How many 15%, Rs 100 shares of 'Mercantile Co-operative Bank' should he purchase to realize his aim? What will be his investment if the market price of the share is Rs 120?
Solution 5 Question 6
Gayathri wants to have a monthly income of Rs 500.For this she purchased Rs 75 shares of 'V.G.Electronics' paying 20% dividend. How many shares did Gayathri purchased and what is her investment if the market price of the share is Rs 62.50?
Solution 6 Question 7
Akanksha invested 15%, 25% and 35% of her savings in buying shares of 'Infosys', 'Wipro' and 'Reliance' which declared dividends of 16%, 18% and 20% respectively. If her total income from dividends is Rs 52,125, find her savings and the amount invested in each company.
Solution 7 Question 8
Tarun invested Rs 24,000 and Rs 30,000 in buying Rs 100 at par shares of 'Vam Organics' and 'Hero Honda' which later declared dividend of 12% and 15% respectively. After collecting the dividends Tarun sold the shares as their prices had fallen by Rs 5 and Rs 10 respectively. Find Tarun's earnings from the above transactions.
Solution 8 Question 9
Bhavana invested Rs 20,000 and Rs 25,000 in buying shares of 'Bharati Telecom' and 'Satyam Infoways' which later declared dividend of 10% and 12.5% respectively. After collecting the dividends Bhavana sells all her shares at a loss of 4% and 5% respectively on her investments. Find her total earnings.
Solution 9 Question 10
Karan buys 125 shares of Rs 100 each of 'Reliance Technologies Ltd.' which pays a dividend of 6%. He buys them at such a price that he gets 4% of his money. At what price did Karan buy the share?
Solution 10 Question 11
Vikram bought 200 shares of Rs 25 each of 'Calcutta Jute Co.' paying 8% of dividend. Vikram bought them at such a price that he gets 10% of his money. At what price did he buy the share?
Solution 11 Question 12
Archana bought 250 shares of Rs 50 each of 'Indal' paying 12% of dividend. She bought them at such a price that she gets 15% return on her investment. At what share did she buy the shares?

Solution 12 Question 13
Which among these is a better investment:
(a) 12% at 125 or 16% at 150
(b) 16% at 80 or 18% at 120
(c) 15% at 80 or 12% at 75
(d) 18% at 120 or 22% at 150
(e) 12.5% at 125 or 7.5% at 80
Solution 13 Question 14
Usha sold 350 shares of Rs 150 each paying 6% dividend at Rs 120 and invested the proceeds in Rs 75 shares at par paying 8% dividend. Calculate the number of Rs 75 shares she bought and the change in her annual income.
Solution 14 ## Chapter 4 - Shares and Dividends Exercise Ex. 4.3

Question 1
Ramesh had Rs 100 shares of 'Bihar Steel' paying 8% dividend. He sold them at a market price of Rs 130 and invested the proceeds in buying Rs 50 shares of 'Jindal steel' available at Rs 75 and paying 12% dividend. He thus increased the annual income by Rs 360. How many shares did Ramesh sell?
Solution 1 Question 2
Payal had Rs 125 shares of 'Asian Chemicals' paying 12% dividend. She sold them at Rs 150 and invested the proceeds in Rs 50 shares of 'Saras Chemicals' at Rs 40 and paying 10% dividend. She thus increased her income by Rs 825. Find the number of shares of 'Asian chemicals' that Payal sold.
Solution 2 Question 3
Ananth had Rs 50 shares of 'Esco' paying 6% dividend. He sold them at a market price of Rs 80 and invested the proceeds in buying Rs 100 shares of 'Y2K Software' at Rs 150 and paying 11% dividend. He thus increased his annual income by Rs 2,150. How many shares of 'Esco' did he sell?
Solution 3 Question 4
Krithika wants to invest Rs 10,000 in shares of different companies such that the percentage return on her investment is 8%. She invested Rs 4,500 in 6% Rs 100 shares at Rs 75, Rs 2,500 in 8% Rs 100 shares at par and the rest in 16% Rs 100 shares. Find the rate at which she bought the 16% shares.
Solution 4 Question 5 Solution 5 