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  • Question
  • A man sells 5000 common shares of Company X (each of par value $ 10), which pays a dividend of 20%, at $30 per share. He invests the sale proceeds in ordinary shares of Company Y(each of par value $25) that pays a dividend of 15%. If the market value of a share of Company Y is $40, find out the number of shares of Company Y purchased by the man.


  • Options
  • A. 3850
  • B. 3750
  • C. 3700
  • D. 3800

  • Correct Answer
  • 3750 

    Explanation


  • Stocks and Shares problems


    Search Results


    • 1. 
      Shyam purchased 12000 shares of a company, of par value $ 10 each, paying an annual dividend of 15% at such a price that she gets 10% on her investment. Find the market value of a share.

    • Options
    • A. $ 25
    • B. $ 15
    • C. $ 20
    • D. $ 24
    • Discuss
    • 2. 
      Find the income by investing $ 81000 in 9% stock at 135.

    • Options
    • A. $ 5500
    • B. $ 6400
    • C. $ 5400
    • D. $ 6000
    • Discuss
    • 3. 
      A company issued 50000 shares of par value $ 100 each. If the total dividend declared by the company is $ 125000, out of which `50000 have been kept in reserve fund and the remaining is distributed as dividend, find out the rate of dividend paid by the company.

    • Options
    • A. 2 3 % 4
    • B. 1 1 % 2
    • C. 1 1 % 4
    • D. 2 %
    • Discuss
    • 4. 
      Find the income on 71/2% stock of $ 20000 purchased at $ 120.

    • Options
    • A. $ 1550
    • B. $ 1450
    • C. $ 1500
    • D. $ 1600
    • Discuss
    • 5. 
      The capital of a company is made up of 50000 preferred shares with dividend of 20% and 20000 common shares, the par value of each type of share being $ 10. The company had a total profit of $ 180000 out of which $ 30000 were kept in reserve fund and the remaining distributed to shareholders. Find out the dividend percent to the common shareholders.

    • Options
    • A. 24 %
    • B. 20 %
    • C. 25 %
    • D. 30 %
    • Discuss
    • 6. 
      Find the investment required to purchase $ 125000 of 8% stock at 92.

    • Options
    • A. $ 115000
    • B. $ 120000
    • C. $ 105000
    • D. $ 125000
    • Discuss
    • 7. 
      If the interest on Rs. 50 at 4 1/ 2 be equal to the discount on Rs. 59 for the same time and at the same rate when is the latter sum due?

    • Options
    • A. 2 years
    • B. 4 years
    • C. 6 years
    • D. 3 years
    • Discuss
    • 8. 
      The simple interest and the true discount on a certain sum for a given time and at a given rate are Rs. 25 and Rs. 20 respectively. The sum is?

    • Options
    • A. Rs. 500
    • B. Rs. 200
    • C. Rs. 250
    • D. Rs. 100
    • Discuss
    • 9. 
      The difference between the simple interest and the true discount on a certain sum of money foe 6 months at 6% is Rs. 27. Find the sum?

    • Options
    • A. Rs. 30900
    • B. Rs. 39000
    • C. Rs. 20900
    • D. Rs. 30600
    • Discuss
    • 10. 
      A man buys a watch for Rs. 195 in cash and sells it for Rs. 220 at a credit of 1 year. If the rate of interest is 10%, the man?

    • Options
    • A. Gains Rs. 15
    • B. Gains Rs. 3
    • C. Gains Rs. 5
    • D. Loses Rs. 5
    • Discuss


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