Stocks & Shares Mcqs - Set 3

1)   A 9% stock yields 8%. The market value of the stock is__________?

a. Rs. 72
b. Rs. 116.50
c. Rs. 90
d. Rs. 112.50
Answer  Explanation 

ANSWER: Rs. 112.50

Explanation:
To get Rs. 8, investment = Rs. 100
To get Rs. 9, investment = Rs. 100/8 * 9 = Rs. 112.50.

Market value of Rs. 100 stock = Rs. 112.50.

2)   A man invested Rs. 14,400 in Rs.100 shares of a company at 20% premium. If the company declares 5% dividend at the end of the year , then how much does he get?

a. Rs. 500
b. Rs. 600
c. Rs. 650
d. Rs. 720
Answer  Explanation 

ANSWER: Rs. 600

Explanation:
Number of shares= (14400 / 120) =120.
Face value=Rs.(100×120) =Rs.12000.

Annual Income= Rs.(5/100×12000) =Rs. 600.

3)   Find the income derived from 88 shares of Rs. 25 each at 5 premium, brokerage being (1/4) per share and the rate of dividend being 7(1/2) % per annum.

a. 150
b. 165
c. 180
d. 201
Answer  Explanation 

ANSWER: 165

Explanation:
Cost of 1 share = Rs. [25+5+1/4)] = Rs. (121/4).
Cost of 88 shares = Rs.[(121/4)*88] = Rs. 2662.

Investment made = Rs. 2662.

Face value of 88 shares = Rs. (88*25) = Rs. 2200.

Dividend on Rs. 100 = (15/2).

Dividend on Rs. 2200 = Rs. [(15/20*(1/100)*2200] = Rs. 165.

Income derived = Rs. 165.

4)   Rs. 9800 are invested partly in 9% stock at 75 and 10% stock at 80 to have equal amount of incomes. The investment in 9% stock is___________?

a. Rs. 4800
b. Rs. 5400
c. Rs. 5000
d. Rs. 5600
Answer  Explanation 

ANSWER: Rs. 5000

Explanation:
Let the investment in 9% stock is x.
investment in 10% stock = (9800 – x)

9/75 * x = 10/80(9800 – x) hence x = 5000

5)   A man invested Rs. 14,400 in Rs 100 shares of a company at 20% premium. If the company declares 5% dividend at the end of the year, then how much does he get ?

a. Rs. 500
b. Rs. 600
c. Rs. 650
d. Rs. 720
Answer  Explanation 

ANSWER: Rs. 600

Explanation:
No explanation is available for this question!

6)   A 9% stock yields 8%. The market value of the stock is__________?

a. Rs. 72
b. Rs. 92
c. Rs. 112.50
d. Rs. 116.50
Answer  Explanation 

ANSWER: Rs. 112.50

Explanation:
No explanation is available for this question!

7)   A invested some money in 10% stock at 96. If B wants to invest in an equally good 12% stock, he must purchase a stock worth of__________?

a. Rs. 80
b. Rs. 115.20
c. Rs. 120
d. Rs. 125.40
Answer  Explanation 

ANSWER: Rs. 115.20

Explanation:
For an income of Rs. 10, investment = Rs. 96.
For an income of Rs. 12, investment = Rs ( 96/10 X 12 )
= Rs. 115.20

8)   How many shares of market value Rs. 25 each can be purchased for Rs. 12750, brokerage being 2% ?

a. 450
b. 500
c. 550
d. 600
Answer  Explanation 

ANSWER: 500

Explanation:
C.P. of each share = Rs. (25 + 2% of 25) = Rs. 25.50.
So Number of shares = 12750/25.50 = 500.

9)   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. 37.50
b. Rs. 40
c. Rs. 48
d. Rs 52
Answer  Explanation 

ANSWER: Rs. 40

Explanation:
Dividend on 1 share = Rs. ( 10/100 X 50 ) = Rs. 5. Rs. 12.50 is an income on an investment of Rs. 100. Rs. 5 is an income on an investment of Rs, ( 100 X 2/25 X 5 ) = Rs. 40. So Cost of 1 share = Rs. 40.

10)   To produce an annual income of Rs. 1200 from a 12% stock at 90, the amount of stock needed is__________?

a. Rs. 10,000
b. Rs. 10,800
c. Rs. 14,400
d. Rs. 16,000
Answer  Explanation 

ANSWER: Rs. 10,000

Explanation:
For an income of Rs. 12, stock needed = Rs. 100.
For an income of Rs. 1200, stock needed = Rs.( 100/12 X 1200 ) = Rs. 10,000.

11)   In order to obtain an income of Rs. 650 from 10% stock at Rs. ,96, one must make an investment of___________?

a. Rs. 3100
b. Rs. 6240
c. Rs. 6500
d. Rs. 9600
Answer  Explanation 

ANSWER: Rs. 6240

Explanation:
No explanation is available for this question!

12)   A man invested Rs. 1552 in a stock at 97 to obtain an income of Rs. 128. The dividend from the stock is___________?

a. 7.50%
b. 8%
c. 9.70%
d. None of these.
Answer  Explanation 

ANSWER: 8%

Explanation:
By investing Rs. 1552, income = Rs. 128. By investing Rs. 97, income = Rs.( 128/1552 X 97 ) = Rs. 8. So Dividend = 8%

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