Stock and Share

Q 1: A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 10% on his money. The market value of each share is: A)Rs. 12 B)Rs. 14 C)Rs. 18 D)None of these Answer : Option C Explanation: Dividend on Rs. 20 = Rs. (9 x 20)/100=9/5 Rs. 10 is an income on Rs. 100. Rs. 9/5 is an income on Rs.(100/10)x(9/5)= Rs. 18 Q 2: A 20% stock yielding 10% is quoted at: A)Rs. 200 B)Rs. 120 C)Rs. 250 D)Rs. 100 Answer : Option A Explanation: To earn Rs. 10, money invested = Rs. 100. To earn Rs. 20, money invested = Rs.(100 x 20)/10=Rs. 200 Market value of Rs. 100 stock = Rs. 200 Q 3: The cost price of a Rs. 100 stock at 5 discount, when brokerage is 1/8 % is: A)Rs. 915.125 B)Rs. 85.125 C)Rs. 94.21 D)Rs. 95.125 Answer : Option D Explanation: C.P. = Rs.[100-5+(1/8)]=Rs. 95.125 Q 4: In order to obtain an income of Rs. 550 from 10% stock at Rs. 66, one must make an investment of: A)Rs. 4630 B)Rs. 3630 C)Rs. 3550 D)Rs. 3680 Answer : Option B Explanation: To obtain Rs. 10, investment = Rs. 66. To obtain Rs. 550, investment=(66 x 550)/10 = Rs. 3630.

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