Stocks and Shares Questions

• Split investment to equalize dividend income Rs. 2780 is invested partly in 4% stock at 75 and partly in 5% stock at 80 so that the two incomes are equal. How much is invested in the 5% stock?
• Dividend income from number of shares A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the dividend rate is 6%, what is his annual dividend income?
• Rate of return on discounted purchase A man bought 20 shares of Rs. 50 each at a discount of Rs. 5 per share. The dividend rate is 4 3/4%. What is his effective rate of interest (yield) on the investment?
• Find market value for a target yield A man buys Rs. 20 face-value shares paying 9% dividend. He requires a 12% return on his money. What should be the market value (purchase price) per share?
• Infer the dividend rate from investment and income A man invested Rs. 388 in a stock quoted at 97 and received an annual income of Rs. 22. What is the dividend rate of the stock?
• Compare two investments after income tax Which is the better investment: (A) 4% stock at par with income tax at 5 paise per rupee (i.e., 5% tax) or (B) 4 1/2% stock at 110 free from income tax?
• Equal dividend condition between two quoted stocks A man invests some money partly in 3% stock at 96 and partly in 4% stock at 120. To receive equal dividend from both parts, in what ratio should the investments be made (3% : 4%)?
• Which quoted stock gives higher yield? Compare: 5% stock at 143 versus 3 1/2% stock at 93. Which is the better investment (higher yield)?
• Price for target yield on a fixed-dividend stock I want to purchase a 6% stock that must yield 5% on my capital. At what price (per Rs. 100 nominal) should I buy the stock?
• Equivalent yield pricing across different coupons A invested in 4% stock at 96. For B to invest in an equally good 5% stock (same yield as A), at what price per Rs. 100 nominal should B purchase?
• Cost of purchasing railway stock at a quoted premium Find the total cost of buying Rs. 12,600 nominal of Railway Stock quoted at 150 1/2% (i.e., price = 150.5) when dividend rate is 5 1/2% (dividend info not required for cost).
• Stocks and Shares – Purchase quantity with brokerage included How much nominal stock (face value) can be purchased for Rs. 794.50 when the market quote is 112.5 (i.e., Rs. 112.50 for every Rs. 100 of stock) and the brokerage is 1% on the purchase?
• Stocks and Shares – Total amount payable with brokerage How much must be paid to buy Rs. 1365 nominal stock quoted at 104, if brokerage is 1% on the purchase?
• Stocks and Shares – Quantity purchasable with brokerage How much 4.5% stock quoted at 95 can be purchased by investing Rs. 1950 if brokerage is 1/4% on the purchase?
• Stocks and Shares – Income from discount purchase What annual income (dividend) results from investing Rs. 1900 in 8% stock quoted at 5 discount (i.e., at 95)?
• Stocks and Shares – Net yield from quoted price below par What rate of interest (net yield) is obtained from investing in 8.5% stock when the quoted price is 6.5% below par (i.e., price = 93.5)?
• Stocks and Shares – Quantity to sell for a target net proceeds with brokerage How much nominal stock must be sold to realize Rs. 8190 net if the stock sells at 118 and brokerage on sale is 1%?
• Shares – Purchase cost with premium and brokerage per share Find the purchase cost of 66 shares of Rs. 35 face value each bought at Rs. 10 premium (market price Rs. 45), with brokerage 1% per share applied on the market price.
• Stocks and Shares – Net yield when buying at a small premium What net rate of interest (yield) is obtained from investing in 12.75% stock when the price is at a 2% premium (i.e., price = 102)?
• Dividend computation from number of shares and face value A company declared an annual dividend of 10%. What is the annual dividend received by Ram who owns 1500 shares of face value $10 each?