Mr. Pandit purchased 300 shares of FV Rs. 60 at a premium of Rs. 100. He received 40% dividend
on the shares. After receiving dividend, he sold 200 shares at a premium of Rs. 40 and remaining
at a discount of Rs. 10. For each trade, he paid the brokerage at the rate of 0.2%. Find whether
Mr. Pandit gained or incurred a loss ? by how much ?
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Step-by-step explanation:
ANSWER
Amount invested:
= cost of each share *number of shares purchased
=(50+100)×200=Rs.30,000
Net income of Mr. D’souza:
= total money received on selling 200 shares + total dividend received – total brokerage paid on 3 trades
=[(50−10)×100+(50+75)×100]+200×(
100
50
×50)−(20×3)
=4000+12,500+5000−60
=16,500+5000–60
=Rs.21,440
Since the net income of Mr. D’souza is less than the amount invested, so Mr. D’souza incurred a loss.
Loss incurred = Amount invested – Net income of Mr. D’souza
=30,000–21,440=Rs.8560
Thus, Mr. D’souza incurred loss of Rs.8560
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