Face Value and Market Value

Q.

A man buys Rs. 20 shares paying $9\%$ dividend. The man wants to have an interest of $12\%$ on his money. The market value of each share is:

1. Rs. 18

2. Rs. 15

3. Rs. 12

4. Rs. 21

Q.

The market value of a $10.5\%$ stock, in which an income of Rs. 756 is derived by investing Rs. 9000, brokerage being $1/4\%$ is:

1. Rs. 124.50

2. Rs. 124.25

3. Rs. 125.75

4. Rs. 124.75

Q. What some should Ashok invest in RS 25 shares selling at RS 36 to obtain and income of RS 720 if the dividend declared by the company is 12% also find:
1. The number of shares bought by Ashok
2. The percentage return on his income

Q.

Which is better investment: $7\%$ Rs.100 shares at Rs.120 or $8\%$ Rs.10 shares at Rs.13.50?

1. 7% Rs.100 at Rs 120

2. 8% Rs.10 shares at Rs.13.50

3. Both are equally good

4. Cannot be compared, as the total amount of investment is not given.

Q.

By investing Rs. 1620 in $8$% stock, Michael earns Rs. 135. The stock is then quoted at:

1. 108

2. 96

3. 80

4. 106

Q.

Salman buys 50 shares of face value Rs 100 available at Rs 132. Then which of the following is/are correct if dividend is 7.5%.

1. Total investment = Rs 5000 and annual income = Rs 495

2. Total investment = Rs 6600 & annual income = Rs 375

3. Total investment = Rs 6600 & annual income = Rs 495

4. Total investment = Rs 5000 and annula income = Rs 375

Q.

A man invests ₹ 20020 in buying share of N.V ₹ 26 at 10% premium. The dividend on the share is 15% per annum, then find

i) the annual income

ii) the rate of return

1. ₹ 2630 & 14.63% respectively

2. ₹ 2730 &13.63% respectively

3. ₹ 2630 & 13.63% respectively

4. ₹ 2730 & 14.63% respectively

Q.

Ashwarya bought 496, Rs 100 shares at Rs 132 each. Find :

(i) an investment made by her.

(ii) income of Ashwarya from these shares, if the rate of dividend is 7.5%.

(iii) how much extra must Aishwarya invest in order to increase her income by Rs 7, 200?

Q.

Bill Campbell invested $\$3200$ and borrowed $\$3200$ to purchase shares in Kellogg.

At the time of his investment, Kellogg stock was selling for $\$52$ a share

(a) If Bill paid a $\$53$ commission, how many shares could he buy if he used his $\$3200$ and borrowed $\$3200$ on margin to buy Kellogg stock?

(Round your answer to $2$ decimal places.) Number of shares

(b) Assuming Bill did use margin, paid a $\$92$ total commission to sell his Kellogg stock, and sold his stock for $\$57$ a share, how much profit did he make on his Kellogg investment? (Use the number of shares computed in part (a) rounded to $2$ decimal places.

Round your final answer to $2$ decimal places.) Total profit after commissions

Q.

A man invests Rs 3.072 in a company paying 5 % per annum, when its Rs 10 share can be bought for Rs 16 each. Find :

(i) his annual income;

(ii) his percentage income on his investment.

Q.

Which is better investment A which is 12% of Rs 100 share at 190 or B which is 10% Rs 120 share at Rs 90.

1. A

2. B

3. Both are equal

4. Can't be determined

Q.

Question 36

In the first year on an investment of Rs. 600000, the loss is 5% and in the second year, the gain is 10%, the net result is ___.

Q.

Mr.Parekh invested Rs.52, 000 on Rs.100 shares at a discount of Rs.20 paying 8% dividend. At the end of 1 year he sells the shares at a premium of Rs.20.

Find the profit earned including his dividend.

1. Rs. 28, 200

2. Rs. 29, 200

3. Rs. 30, 200

4. Rs. 31, 200

5. Rs. 32, 200

1. Rs. 28, 200

2. Rs. 29, 200

3. Rs. 30, 200

4. Rs. 31, 200

5. Rs. 32, 200

Q.

How much should a man invest in ₹ 50 shares selling at premium of ₹ 60 to obtain an income of ₹ 1500, if the dividend % is 20

1. ₹ 8500

2. ₹ 15000

3. ₹ 9000

4. ₹ 5000

Q. Ranna buys Rs 100 shares of a company at Rs 90 and sells them when the price becomes Rs 30 below par. Find his loss if he invested Rs 4, 050.

Q.

A shopkeeper purchases an audio system for $Rs.3,000$ and sells it off at a again of $15\%$. He also charges a sales of tax of $10\%$ on the selling price. Calculate the amount that the buyer will pay to the shopkeeper.

Q.

A man buys Rs 75 shares at a discount of Rs 15 of a company paying 20% divident. Find :

(i) the market value of 120 shares ;

(ii) his annual income;

(iii) his profit percent.

Q. Rohit invested Rs 9, 600 on Rs 100 shares at Rs 20 premium paying 8% dividend. Rohit sold the shares when the price rose to Rs 160. He invested the proceeds (excluding dividend) in 10% Rs 50 shares at Rs 40. Find the :
(i) Original number of shares
(ii) Sale proceeds
(iii) New number of shares
(iv) Change in the two dividends.
[4 MARKS]

Q. Complete the following table by writting suitable numbers and words.

Sr.No	FV	Share is at	MV
(1)	Rs 100	par	...
(2)	...	premium Rs 500	Rs 575
(3)	Rs 10	...	Rs 5

Q.

The current price of share is called as ___

Q. Amit Kumar invests Rs 36, 000 in buying Rs 100 shares at Rs 20 premium. The dividend is 15% per annum. Find:
(i) The number of shares he buys
(ii) His yearly dividend
(iii) The percentage return on his investment.
Give your answer correct to the nearest whole number.
[3 MARKS]

Q.

Question 18

A TV set was bought for Rs 26250 including 5% VAT. The original price of the TV set is
(a) Rs. 27562.50
(b) Rs. 25000
(c) Rs. 24937.50
(d) Rs. 26245

Q. The value fixed for each share is called its ________.

1. dividend
2. nominal value
3. market value
4. shareholder

Q.

If the Market Value of a share is equal to the Nominal Value, the share is said to be at _______.

1. par

2. below par

3. discount

4. premium

Q. Mr Tiwari invested Rs 29, 040 in 15% Rs 100 shares quoted at a premium of 20%. Calculate :
(i) the number of shares bought by Mr Tiwari
(ii) Mr Tiwari's income from the investment
(iii) the percentage return on his investment
[3 MARKS]

Q.

Question 7

A merchant had Rs.78, 592 with her. She placed an order for purchasing 40 radio sets at Rs.1, 200 each. How much money will remain with her after the purchase?

Q.

A dividend of 12% was declared on ₹ 100 share selling at a certain price. If the rate of return is 8%. Then the market value of share is ₹ ___

1. 120

2. 100

3. 150

4. 100

Q.

Of $60$ randomly chosen students from a school surveyed, $16$ chose the aquarium as their favourite field trip. There are $720$ students in the school. Predict the number of students in the school who choose the aquarium as their favourite field trip.

Q.

Sam buys shares of a company at Rs 90 and sells them when the price becomes Rs 30 below par. What will be his loss if he invested Rs 4050?

1. Rs 900

2. Rs 850

3. Rs 800

4. Rs 600

Q.

A man invests ₹ 15000 in a company paying 6 % dividend when its ₹ 100 shares can be bought for ₹ 150. Find

i) the number of shares he bought

ii) his annual income

iii) his percentage income on his investment

1. i) 200 (ii) ₹ 1600 (iii) 5%

2. i) 100 (ii) ₹ 1600 (iii) 4%

3. i) 100 (ii) ₹ 600 (iii) 4%

4. i) 300 (ii) ₹ 5000 (iii) 5%