Question

10.)Mr Santosh purchased 25 shares of a company of FV Rs.50 at MV Rs.56. The company declared 9% dividend. After receiving dividend, he sold the shares at MV Rs.52. He paid brokerage at the rate 0.5% for each transaction. What is his profit or loss in this transaction?

Answer 1

Amount of Dividend per share = 50 x 9%

                                                   = 50 x 9/100

                                                   = 4.5

Amount earned from dividends = 25 x 4.5

                                                    = 62.5

Mr. Santosh buys share for 56 and sells it for 52. So, there is loss of 4 rupees per share.

Total loss by selling the shares = 4 x 25

                                                    = 100

Transaction value when he sells shares = 52 x 25

                                                                  = 1300

Brokerage = 1300 x 0.5%

                  = 6.5

Net profit/loss = 62.5 - 100 - 6.5

                       = - 44

So the loss is 44 Rupees.