Question

13. Mr. Sharma has 60 shares of N.V. * 100
sells them when they are at a premium
60%. He invests the proceeds in share
nominal value 50, quoted at 4% disc
and paying 18% dividend annually. Calcu
(i) the sale proceeds;
(ii) the number of shares he buys; and
(iii) his annual dividend from the shares.
discount
Calculate​

Answer 1

Answer:

1st case

Nominal value of 1 share = Rs. 100

Nominal value of 60 shares = Rs. 100 × 60 = Rs. 6,000

Market value of 1 share = Rs. 100 + 60% of Rs. 100 = Rs. 100 + Rs. 60 =

Rs. 160

Market value of 60 shares = Rs. 160 × 60 = Rs. 9,600 Ans.

(ii) Nominal value of 1 share = Rs. 50

Market value of 1 share = Rs. 50 − 4% of Rs. 50 = Rs. 50 – Rs.2 = Rs.48

∴ No of shares purchased = 9,600/48 =200 shares Ans.

(iii) Nominal value of 200 shares = Rs. 50 × 200 = Rs. 10,000

Dividend % = 18%

Dividend = 18% of Rs. 10,000 =

(18/100) × Rs.10,000= Rs.1,800 Ans

   

                       hope it helps....