Question

How many shares of rs. 120 each at rs. 150 should lujan sell to get rs. 3450

Answer 1

Answer:

Number of shares=50

Face value of each share=Rs.100

Market value of each share=Rs.132

Total face value=Rs.100×50

=Rs.5,000

(i) Total investment=Rs.132×50

=Rs.6,600

(ii) Rate of dividend =7.5%

Annual income=Rs.

100

5,000×7.5

=Rs.375

(iii) Let extra share should he buy be x.

then total number of shares=50+x

Total face value=Rs.100×(50+x)

∴ Annual income=Rs.

100

100×(50+x)×7.5

=(50+x)×7.5

∴(50+x)×7.5=375+150

50+x=

7.5

525

=70

x=70−50=20

Hence, the extra shares should be buy=20.