# Stocks and Shares Quiz Set 011

### Question 1

If my annual dividend income after investing Rs. 6450 in a stock at Rs. 129 is Rs. 550, then what % divided is paid by the company?

A

11%.

B

12%.

C

10%.

D

13%.

Soln.
Ans: a

Let the dividend be p%. The income is \$p/129\$ × 6450 = Rs. 550. Solving, we get p = 11%.

### Question 2

Rs. R1 are invested in 7% stock at Rs. 90, and R2 is invested in 21% stock at Rs. 75. If the dividends are equal then the ratio of R1 and R2 is?

A

18:5.

B

19:5.

C

18:6.

D

21:10.

Soln.
Ans: a

Return from investing R1 is \$7/90\$ × R1. If it equals return from R2, \$7/90\$ × R1 = \$21/75\$ × R2. So, R1/R2 = \$21/75\$ × \$90/7\$ = 18:5.

### Question 3

How much amount should be invested in a 13% stock at Rs. 30 so as to earn a dividend of Rs. 221?

A

Rs. 510.

B

Rs. 610.

C

Rs. 410.

D

Rs. 710.

Soln.
Ans: a

Let the amount be A. Then, dividend = \$13/30\$ × A = 221. Solving, we get A = Rs. 510.

### Question 4

How much amount of money do I need to buy Rs. 1000 13% stock at Rs. 115? Take the brokerage to be 2%.

A

Rs. 1170.

B

Rs. 1270.

C

Rs. 1070.

D

Rs. 1370.

Soln.
Ans: a

The amount required to purchase Rs. 100 stock is \$115 + 2\$. So, for buying Rs. 1000 stock, the required cash is Rs. \$(115 + 2)/100\$ × 1000 = Rs. 1170.

### Question 5

Mr. P buys Rs. 204 shares which pay 10% dividend. If he gets 12% on his investment, at what price did he buy the shares?

A

Rs. 170.

B

Rs. 180.

C

Rs. 160.

D

Rs. 190.

Soln.
Ans: a

Income on 1 share = \$10/100\$ × 204 = \$2040/100\$. Rs. 12 is an income on investment of Rs. 100. So, Rs. \$2040/100\$ will be earned on an investment of Rs. \$100/12\$ × \$2040/100\$ = Rs. 170. 