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Published on: 13/05/2022
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1.
The capital of a company is made up of 50,000 preferences shares with a dividend of 16% and 2,500 ordinary shares. The par value of each of preference and ordinary shares is Rs. 10. The company had a total profit of Rs. 1,60,000. If Rs. 20,000 were kept in reserve and Rs. 10,000 in depreciation, what percent of dividend is paid to the ordinary share holders
2.
Vijay wants to invest Rs. 27,000 in buying shares. The shares of the following companies are available to him. Rs. 100 shares of company A at par value ; Rs. 100 shares of company B at a premium of Rs. 25. Rs. 100 shares of company C at a discount of Rs. 10. Rs. 50 shares of company D at a premium of 20%. Find how many shares will he get if he buys shares of company (i) A (ii) B (iii) C (iv) D
3.
Naveen deposits Rs. 250 at the beginning of each month in an account that pays an interest of 6% per annum compounded monthly, how many months will be required for the deposit to amount to atleast Rs. 6390?
4.
Babu sold some Rs. 100 shares at 10% discount and invested his sales proceeds in 15% of Rs. 50 shares at Rs. 33. Had he sold his shares at 10% premium instead of 10% discount, he would have earned Rs. 450 more. Find the number of shares sold by him.
5.
1.
Number of preferential shares = 50,000
Number of ordinary shares = 2500
Total dividend = Total profit - Amount kept in reserve - Depreciation amount
= 1,60,000 - 20,000 - 10,000 = 1,30,000
Income from preferential shares
\(=50,000 \times 10 \times \frac{16}{100} \)
= 80,000
\(\therefore\) Income from ordinary shares
=1,30,000 - 80,000 = 50,000
Let x % be the rate of dividend for ordinary shares
\(50,000 =2500 \times 10 \times \frac{x}{100} \)
\(x =\frac{50,000}{250}=20 \%\)
2.
(i) For Company A
Investment = Rs.27,000
M.V. = Rs.100
Number of shares \(=\frac { 27000 }{ 100 } =270\)
(ii) For B
Investment = Rs.27,000
M.V.= Rs.100 + 25 = Rs.125
Number of shares \( =\cfrac { 27000 }{ 125 } =216\)
(iii) For C
M.V.= Rs.100-10 = Rs.90
Number of shares \(=\frac { 27000 }{ 90 } =300\)
(iv) For D
M.V. \(=50+\frac{20}{100} \times 50=50+10=60\)
Number of shares \(=\frac{27,000}{60}=450\)
3.
a = Rs. 250, P = Rs. 6390, i = \(\frac { 6 }{ 1200 } \) = 0.05
P = \(\frac { a }{ i } \left[ \left( 1+i \right) ^{ n }-1 \right] \)
6390 = \(\frac { 250 }{6/1200 } \left[ \left( 1.005 \right) ^{ n }-1 \right] \)
6390 = 50,000[(1.005)n-1]
0.1278 + 1 = (1.005)n
1.1278 = (1.005)n
Taking logarithm on the boths sides log 1.1278 = n log 1.005
n = \(\cfrac { log\quad 1.1278 }{ log\quad 1.005 } =\cfrac { 0.0523 }{ 0.0022 } \)
n = 23.77 months
\(\Rightarrow\) n = 24 months
It will take 24 months for the deposit to amount to at least Rs. 6390
4.
Let the number of shares be x.
Market value of 1 share = 100 - 10 = 90
Market value of x shares = 90x
Income from 10% discount shares
If Investment = 33, Income = 15
If Investment = 90x, Income \(=\cfrac { 15 \times90x }{ 33 } \)
Income from 10% premium shares
= \(\cfrac { 110x }{ 33 } \times 15\)
\(\cfrac { 110x }{ 33 } \times 15-\cfrac { 90x }{ 33 } \times 15=450\)
\(\cfrac { 15x }{ 33 } {( 110 - 90) } =450\)
x = \(\cfrac { 450\times 33 }{ 15\times 20 } \) = 49.5~50 shares
5.
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