Test: Stocks And Shares- 2 - CAT MCQ

Assume that face value = Rs.100 as it is not given

To earn Rs.8, money invested = Rs.100

To earn Rs.14, money invested = 
100 ×14 / 8= Rs.175

ie, market value of the stock = Rs.175

 Let investment in each case be Rs. (143 x 117).
Income in 1st case = Rs.11/143 x 143 x 117 = Rs. 1287.
Income in 2nd case = Rs.39/(4×117) x 143 x 117= Rs. 1394.25
Clearly, 9 3/4% stock at 117 is better.

Let investment in 12% stock be Rs.x
Then, investment in 15% stock=Rs.(12000−x)
∴ 12/120 × x + 15/125 *(12000−x) = 1360
⇒ x/10 + 3/25(12000−x) = 1360
⇒ 5x + 72000 − 6x = 1360 × 50
⇒ x = 4000

Let the investment in 9% stock be Rs.x        Then,investment in 10% stock    = Rs.(9800−x)        
9/75 × x = 10/80 × (9800−x)        
⇒ 3x/25 = (9800−x)/8
⇒24x = 9800 × 25 − 25x        
⇒ 49x = 9800×25        
⇒x = 5000

For an income of Rs. 8, investment = Rs. 100.
For an income of Rs. 6,
investment = Rs.(100/8 × 6)
= Rs.75

Market value of a share = Rs. 25
Market value of 12500 shares = Rs. (25 x 12500) = Rs. 312500
Thus, the amount required to purchase 12500 shares = Rs. 312500

Face value of each share = Rs.20
Market value of each share = Rs.25
Number of shares = 12500
Amount required to purchase the shares = 12500 × 25 = 312500
Mohan further sells the shares at a premium of Rs. 11 each
ie, Mohan further sells the shares at Rs.(20+11) = Rs.31 per share
total amount he gets by selling all the shares = 12500 × 31 = 387500
His gain = 387500 - 312500
 = Rs.75000
 

Total number of preferred shares = 1200
Face value = Rs.50
dividend paid on preferred shares is 10%
Dividend per share = 50 × 10/100 = Rs.5
Total Dividend = 1200 × 5 = 6000
Total number of common shares = 3000
Face value = Rs.50
Semi-annual dividend of 3½ % is declared on common shares.
semi-annual dividend per share = 
50 × 7/2 × 100 = Rs.7/4
Total semi-annual dividend = 7/4 × 3000 = Rs.5250
annual dividend = Rs.5250 × 2 = Rs.10500
Total dividend on all all shares(preferred and common) = 6000 + 10500 
= Rs.16500
 

Assuming that face value of the first stock = Rs.100 as it is not given in the question
Since it is a 5% stock, we can take the dividend per stock = Rs.5
Market Value of the first stock = Rs.104
Investment on the first stock = Rs.26000
Number of stocks purchases = 26000/104 = 250
His total income from all these stocks = Rs.250 × 5 = Rs.1250
He sells each of this stock at Rs.120
ie, amount he earns = Rs.120 × 250 = Rs.30000
He invest this Rs.30000 in 6% stock (here also face value is not given and hence take it as Rs.100)
His new income = Rs.(1250 + 2500) = Rs.3750
ie, By Rs.30000 of investment , he earns an income of Rs.3750
To get an income of Rs.6, investment needed = (30000 × 6)/3750 = Rs.48

Since the face value of the stock is not given, we can take it as Rs.100
it is an 8% stock. ie, dividend per stock = Rs.8
Total investment = Rs.32400
Market Value = Rs.90
Amount of stock she purchased = (32400×100)/90 = Rs.36000
Number of shares she purchased = 32400/90 = 360
Total income = 360 × 8 = Rs.2880
She sold out Rs. 18000 stock when the price was Rs.95
Amount received by selling Rs.18000 stock at Rs.95 = (18000×95)/100 = Rs.17100
Amount received by selling remaining Rs.18000 stock at Rs.98 = (18000×98)/100 = Rs.17640
Total amount received = Rs. (17100 + 17640) = Rs. 34740
This Rs.34740 is invested in 10% stock at 96½
Number of shares = 34740*(193/2) = 360
Total income from these stocks = 360 × 10 = Rs.3600
Change in income = Rs.3600 - Rs.2880 = Rs.720