Question

how much of 5% stock at 5 above par can be purchased by investing

rs. 7980
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Answer 1

Answer:

Dividend per share in 1st case is Rs.14

Dividend per share in 2nd case is Rs.15

Number of shares one can purchase with Rs.(95*105) in 1st case = (95*105) /95= 105

Number of shares one can purchase with Rs.(95*105) in 2nd case = (95*105) /105 = 95

Income in 1st case = Rs.(14 × 105) = Rs.1470

Income in 2nd case = Rs.(15 × 95) = Rs.1425