Question

gopal has some rs.100 shares of a company A , paying 10 percent dividend . He sells a certain number of these shares at a discount of 20 percent and invests the proceeds in rs 100 shares at rs 60 of a company B paying 20 percent dividend . If his income from the shares sold , increases by rs. 18000 find the number of shares sold by gopal.

Answer 1

Nominal value of 1 share = ₹ 5
Market value 1 share = ₹ 5 + ₹ 1.15 = ₹ 6.15
Total money invested = ₹ 800
No of shares purchased = = 160
Market value of 160 shares = 160 × 6.15= ₹ 984
His profit = ₹ 984 – ₹ 800 = ₹ 184
profit = × 100% = 23%