Practice MCQ Questions and Answer on Stocks and Shares

21.

The cost price of a Rs. 100 stock at 4 discount, when brokerage is $$\frac{1}{4}$$% is:

• (A) Rs. 95.75
• (B) Rs. 96
• (C) Rs. 96.25
• (D) Rs. 104.25

Show Answer

 $$\eqalign{ & C.P. = Rs.\,\left( {100 - 4 + \frac{1}{4}} \right) \cr & = Rs.\,96.25 \cr} $$

22.

A man buys Rs. 50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investment, at what price did he buy the shares ?

• (A) Rs. 35.50
• (B) Rs. 40
• (C) Rs. 48
• (D) Rs. 52

Show Answer

 Dividend on 1 share = Rs. $$\left( {\frac{{10}}{{100}} \times 50} \right)$$   = Rs. 5 Rs. 12.50 is an income on an investment of Rs. 100 Rs. 5 is an income on an investment of : = Rs. $$\left( {100 \times \frac{2}{{25}} \times 5} \right)$$ = Rs. 40. ∴ Cost of 1 share = Rs. 40

23.

A man invested Rs. 1552 in a stock at 97 to obtain an income of Rs. 128. The dividend from the stock is:

• (A) 7.5%
• (B) 8%
• (C) 9.7%
• (D) None of these

Show Answer

 $$\eqalign{ & {\text{By}}\,{\text{investing}}\,{\text{Rs}}{\text{.}}\,{\text{1552,}} \cr & {\text{income}} = Rs.\,128. \cr & {\text{By}}\,{\text{investing}}\,Rs.\,97, \cr & {\text{income}} = Rs.\,\left( {\frac{{128}}{{1552}} \times 97} \right) \cr & = Rs.\,8 \cr & \therefore {\text{Dividend}} = 8\% \cr} $$

24.

A man buys Rs. 20 shares paying 9% dividend. The man wants to have an interest of 12% on his money. The market value of each share is:

• (A) Rs. 12
• (B) Rs. 15
• (C) Rs. 18
• (D) Rs. 21

Show Answer

 $$\eqalign{ & {\text{Dividend}}\,{\text{on}}\,Rs.\,20 \cr & = Rs.\,\left( {\frac{9}{{100}} \times 20} \right) \cr & = Rs.\,\frac{9}{5} \cr & Rs.\,12\,{\text{is}}\,{\text{an}}\,{\text{income}}\,{\text{on}}\,Rs.\,100. \cr & \therefore Rs.\,\frac{9}{5}\,{\text{is}}\,{\text{an}}\,{\text{income}}\,{\text{on}} \cr & = Rs.\,\left( {\frac{{100}}{{12}} \times \frac{9}{5}} \right) \cr & = Rs.\,15 \cr} $$