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  • Question

  • Which is better investment, 4% stock at per with an income tax at the rate of 5 paise per rupee or 4 1/ 2% stock at 110 free from income tax?


  • Options
  • A. 4% at par with income tax
  • B. 91/2 at 110
  • C. 5%
  • D. 25%

  • Correct Answer
  • 91/2 at 110 

    Explanation

    Let investment in each case be Rs. (100 x 110)
    Gross income from 4% stock = Rs. (4/100) x (100 x 110) = Rs. 440
    Net income from the stock = Rs. (440 - 22) = Rs. 418
    Net income from 41/2% stock = Rs. (9 x 100 x 110) / (2 x 110) = Rs. 450
    ? Better stock is 41/2% at 110.

    • Stocks and Shares problems

    Search Results

    • 1. 
      A man invested Rs. 388 in a stock at 97 to obtain and income of Rs. 22. The dividend from the stock is?

    • Options
    • A. 12%
    • B. 3%
    • C. 51/2%
    • D. 22.68%
      • Discuss
    • 2. 
      A man buys Rs. 20 shares paying 9% dividend. The man want to have an interest of 12% on his money. The market value of each share must be?

    • Options
    • A. Rs. 12
    • B. Rs. 15
    • C. Rs. 18
    • D. Rs. 21
      • Discuss
    • 3. 
      A man bought 20 shares of Rs. 50 at 5 discount the rate of dividend being 4 3/ 4% The rate of interest obtained is?

    • Options
    • A. 43/4%
    • B. 31/4%
    • C. 5.28%
    • D. 4.95%
      • Discuss
    • 4. 
      A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the rate of dividend be 6% his annual income is?

    • Options
    • A. Rs. 267.30
    • B. Rs. 327.80
    • C. Rs. 324
    • D. Rs. 103.70
      • Discuss
    • 5. 
      Rs. 2780 are invested party in 4% stock at 75 and 5% stock at 80 to have equal amount of incomes. The investment in 5% stock is?

    • Options
    • A. Rs. 1500
    • B. Rs. 1280
    • C. Rs. 1434.84
    • D. Rs. 1640
      • Discuss
    • 6. 
      A man invest some money party in 3% stock at 96 and party in 4% stock at 120. To get equal dividend from both, he must invest the money in the ratio?

    • Options
    • A. 16 : 15
    • B. 3 : 4
    • C. 4 : 5
    • D. 3 : 5
      • Discuss
    • 7. 
      Which is the better stock, 5% at 143 or 3 1/ 2% at 93?

    • Options
    • A. 5% at 143
    • B. 31/2% at 93
    • C. Both are equally good
    • D. None of these
      • Discuss
    • 8. 
      I want to purchase a 6% stock which must yield 5% on my capital. At what price must I buy the stock?

    • Options
    • A. Rs. 111
    • B. Rs. 101
    • C. Rs. 83.33
    • D. Rs. 120
      • Discuss
    • 9. 
      A invested some money in 4% stock at 96. Now, B wants to invest in an equally goods 5% stock. B must purchase a stock worth of?

    • Options
    • A. Rs. 120
    • B. Rs. 124
    • C. Rs. 76.80
    • D. Rs. 80
      • Discuss
    • 10. 
      Find the cost of Rs. 12600 Railway stock at 150 1/ 2% (dividend 5 1/ 2%)?

    • Options
    • A. Rs. 18963
    • B. Rs. 19863
    • C. Rs. 18933
    • D. None of these
      • Discuss

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