Question

. Aditi invested 19,890 to purchase shares of a company with face value of
10 each, at market price of 130. She received dividend of 20% as well.
Afterwards, she sold these shares at market price of 180. She had to pay
brokerage of 2% for both purchase and sales of shares. Find her net profit.

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Answer 1

The net profit is 6870/-

Given that

Total investment =19890

Buying price=130

Face value =10

Percentage dividend= 20%

Percentage brokerage for sale and purchase=2%

Market price=180

From this,

Brokerage amount= $market value*\frac{brokerage.percentage}{100}$

                              =130*2/100

                              =2.6

Cost per share =market value + brokerage amount

                        = 130+2.6

                        =132.6

Number of shares= $\frac{total. investment}{cost.per.share}$

                            =19890/132.6

                            =150

Dividend per share $=\frac{dividend}{100}*face.value$

                               =$\frac{20}{100} *10$

                               =2

Total dividend received= dividend per share * number of shares

                                     =2*150

                                     =300

Brokerage value= market value* brokerage percentage/100

                           =180*2/100

                           =3.6

Selling price per share= market price - brokerage

                                     = 180-3.6

                                     =176.4

Total selling price= number of share * selling price per share  

                            =150*176.4

                            =26460

Profit from selling= selling price - total investment

                            =26460-19890

                            =6570

Net profit= profit from selling + dividend received

              = 6570+300

              =6870

Therefore the net profit is 6870/-

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