a person sells 20% stock of facevalue ₹ 10000 at a premium of 42% . with the money obtained he buys 15 % stock at a discount of 22% . what is the change in his income if the brokerage paid is 2% ?
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Recall that in purchases of stock:
- Facevalue is what you have own on paper
- Premium will increase the price
- Discount will decrease the price
- Brokerage is an expense
Original stock = ₹ 10000
He sold 20% of the stock:
Find the amount of stock left:
Find the earnings from the 20% sold at a premium of 42%:
Find the amount of money spent on the 15% purchase:
Find his current position:
Find the change in position:
Answer: He has a gain of ₹1028.48
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Step-by-step explanation:
Given a person sells 20% stock of face value ₹ 10000 at a premium of 42% . with the money obtained he buys 15 % stock at a discount of 22% . what is the change in his income if the brokerage paid is 2% ?
- Let the face value be Rs 100
- Therefore Income = 20 / 100 x 10000
- = Rs 2000
- Now Market value = Rs 100 + 42
- = 142 – 2
- = Rs 140
- We know that Number of shares = investments / Face value
- = 10,000 / 100
- = 100
- Therefore Sales proceeds will be 140 x 100 = 14,000
- Now market value M.V. = 100 – 22 + 2
- = 78 + 2
- = 80
- Also Number of shares = investments / Face value
- = 14,000 / 80
- = 175
- Now income = 175 x 15 / 100
- = Rs 2625
Therefore change of income will be Rs 2625 – Rs 2000 = Rs 625
Reference link will be
https://brainly.in/question/3714241
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