# Stocks and Shares Quiz Set 007

### Question 1

How much amount should be invested in a 5% stock at Rs. 70 so as to earn a dividend of Rs. 65?

A

Rs. 910.

B

Rs. 1010.

C

Rs. 810.

D

Rs. 1110.

Soln.
Ans: a

Let the amount be A. Then, dividend = $5/70$ × A = 65. Solving, we get A = Rs. 910.

### Question 2

How much cash is realized by selling Rs. 1400 of 13% stock at a discount of 8%? Take the brokerage to be 2%.

A

Rs. 1260.

B

Rs. 1360.

C

Rs. 1160.

D

Rs. 1460.

Soln.
Ans: a

If Rs. 100 stock is sold, the amount realized is $(100 - \text"discount" - \text"brokerage")$ = $(100 - 8 - 2)$. So cash realized by selling Rs. 1400 stock is $(100 - 8 - 2)/100$ × 1400 = Rs. 1260.

### Question 3

Mr. P buys Rs. 112 shares which pay 10% dividend. If he gets 8% on his investment, at what price did he buy the shares?

A

Rs. 140.

B

Rs. 150.

C

Rs. 130.

D

Rs. 160.

Soln.
Ans: a

Income on 1 share = $10/100$ × 112 = $1120/100$. Rs. 8 is an income on investment of Rs. 100. So, Rs. $1120/100$ will be earned on an investment of Rs. $100/8$ × $1120/100$ = Rs. 140.

### Question 4

An amount of Rs. 3675 is invested in 5% stock. The investor earns Rs. 175. What is the market value of the stock?

A

Rs. 105.

B

Rs. 205.

C

Rs. 155.

D

Rs. 305.

Soln.
Ans: a

Rs. 175 is earned when Rs. 3675 is invested. So, Rs. 5 will be earned if the investment is $3675/175$ × 5 = Rs. 105.

### Question 5

Mr. P buys Rs. 88 shares which pay 10% dividend. If he gets 11% on his investment, at what price did he buy the shares?

A

Rs. 80.

B

Rs. 90.

C

Rs. 70.

D

Rs. 100.

Soln.
Ans: a

Income on 1 share = $10/100$ × 88 = $880/100$. Rs. 11 is an income on investment of Rs. 100. So, Rs. $880/100$ will be earned on an investment of Rs. $100/11$ × $880/100$ = Rs. 80. 