₹ 40 shares of a company are selling at 25% premium.

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₹ 40 shares of a company are selling at 25% premium. If Mr. Jacob wants to buy 280 shares of the company, then the investment required by him is
(a) ₹ 11200
(b) ₹ 14000
(c) ₹ 16800
(d) ₹ 8400

Solution:

Face value of each share = ₹ 40
M.V. = 40 x \\ \frac { 125 }{ 100 } = ₹ 50
Number of shares = 280
Total investment = ₹ 280 × 50 = ₹ 14000 (d)

Arun possesses 600 shares of ₹ 25 of a company. If the company announces a dividend of 8%, then Arun’s annual income is
(a) ₹ 48
(b) ₹ 480
(c) ₹ 600
(d) ₹ 1200

Solution:

Number of shares = 600
F.V. of each share = ₹ 25
Rate of dividend = 8%
Annual income = 600 × 25 × \\ \frac { 8 }{ 100 }
= ₹ 1200 (d)

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