Question

Mr. bansal has some Rs. 100 shares of a company paying 10% dividend. he sells some of the shares at a discount of 20% and invests the proceeds in Rs. 100 shares of another company paying 15% dividend whose MV is Rs. 80 . if his income from his shareholdings increases by Rs. 1800 , find the number of shares of the first company that he sold.

Answer 1

N.V is nominal value
M.V is market value
x is no. of shares
Div% is rate of dividend

Assumption : Mr. Bansal has sold all the shares.
LET NUMBER OF SHARES BE x

Ist company:-
N.V = Rs.100
Div% = 10%
Discount = 20%
M.V = 100 - 20% of 100
= Rs.80
Dividend = No. of shares * Div% * N.V
= x * 10/100 * 100
= Rs.10x

Sale proceeds = M.V * No. of shares
= 80 * x
= Rs.80x

IInd company:-
N.V = Rs.100
M.V = Rs.80
Div% = 15%
No. of shares bought
= Sale proceeds/M.V
= 80x/80
= x shares

Dividend = No. of shares * Div% * N.V
= x *v15/100 * 100
= Rs.15x

Given increase in income= Rs.1800
15x - 10x = 1800
5x = 1800
x = 360 shares

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Answer 2

hope this answer would help u .
the nos are changed but process is same .pls mark it as brainliest