Stocks And Shares

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

[A].

Rs. 80

[B].

Rs. 96

[C].

Rs. 106

[D].

Rs. 108

Answer: Option B

Explanation:

To earn Rs. 135, investment = Rs. 1620.

To earn Rs. 8, investment = Rs.		1620	x 8		= Rs. 96.
		135

Market value of Rs. 100 stock = Rs. 96.

Question:
A 12% stock yielding 10% is quoted at:

[A].

Rs. 83.33

[B].

Rs. 110

[C].

Rs. 112

[D].

Rs. 120

Answer: Option D

Explanation:

To earn Rs. 10, money invested = Rs. 100.

To earn Rs. 12, money invested = Rs.		100	x 12		= Rs. 120.
		10

Market value of Rs. 100 stock = Rs. 120.

Question:
A 6% stock yields 8%. The market value of the stock is:

[A].

Rs. 48

[B].

Rs. 75

[C].

Rs. 96

[D].

Rs. 133.33

Answer: Option B

Explanation:

For an income of Rs. 8, investment = Rs. 100.

For an income of Rs. 6, investment = Rs.		100	x 6		= Rs. 75.
		8

Market value of Rs. 100 stock = Rs. 75.

Question:
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:

[A].

Rs. 207.40

[B].

Rs. 534.60

[C].

Rs. 648

[D].

Rs. 655.60

Answer: Option C

Explanation:

Number of shares =		4455		= 540.
		8.25

Face value = Rs. (540 x 10) = Rs. 5400.

Annual income = Rs.		12	x 5400		= Rs. 648.
		100