Mr. Chopade purchase 125 share of FV 100 rupees market value of 90 After taking 20% dividend in the first year and 15 % dividend on second year ,he sold all the share when marked value 105 he paid 50 paise per share brokerage for each transaction done . Find the profits or loss in the transaction.
Answers
Answer:
Rs 6187.5 profit
Step-by-step explanation:
Shares purchased = 125
MV = Rs 90
Investment = 125*90 = Rs 11250
Share value = Rs 100
20% Dividend = Rs 20 per share
Dividend for 125 Shares = 125*20 = Rs 2500
15% Dividend = Rs 15 per share
Dividend for 125 Shares = 125*15 = Rs 1875
MV = Rs 105
Selling Price = 125 * 105 = Rs 13125
Brokerage = 125 * (50/100) = Rs 62.5
Net Amount earned = 13125 + 2500 + 1875 - 62.5
= 17437.5 Rs
Profit = 17437.5 - 11250
= Rs 6187.5
Thus the total profit is 6125.00 Rs
Explanation:
Number of shares purchased = 125
Face Value (FV) of each share = 100
Market Value (MV) of each share = 90
Brokerage per share = 0.50
MV of 125 shares = 125 × 90 = 11,250 Rs
Brokerage of 125 shares = 125 × 0.50 = 62.50 Rs
Purchase value of shares = 11,250 + 62.50 = 11,312.50 Rs
He took dividend in the first year = 20% of FV
FV for 125 shares = 125 × 100 = 12500
= 20% × 12500
= 0.20 × 12500
= 2500 Rs
He took dividend in second year = 15% of 12500
= 0.15 × 12500
= 1875 Rs
He sold all the shares at MV = 105
selling price of 125 shares = 105 × 125 = 13125 Rs
paid brokerage = 0.50 × 125 = 62.50 Rs
Total selling price = (13125 + 2500 + 1875) - 62.50 = 17437.50 Rs
Profit = purchase price < selling price
Profit = 17,437.50 - 11,312.50 = 6125.00 Rs
Thus the total profit is 6125.00 Rs