# Stocks and Shares Quiz Set 020

### Question 1

An investor buys Rs. 70 shares in a company that pays 16% dividend. If his investment is such that it is getting him an interest of Rs. 8%, for how much did he buy each share?

A

Rs. 140.

B

Rs. 150.

C

Rs. 155.

D

Rs. 160.

Soln.
Ans: a

If he bought each share at Rs. x, then his income is \$8/100\$ × x = 70 × \$16/100\$, solving, we get x = Rs. 140.

### Question 2

Which stock investment option is better: 8% at Rs. 113 or 6% at Rs. 120?

A

8% is better.

B

6% is better.

C

Both are same.

D

Can't be decided.

Soln.
Ans: a

Let the amount invested be Rs. 113 × 120. Return on the first investment is \$8/113\$ × 113 × 120 = Rs. 960. Return on the second investment is \$6/120\$ × 113 × 120 = Rs. 678. So 8% is better.

### Question 3

An investor buys Rs. 80 shares in a company that pays 4% dividend. If his investment is such that it is getting him an interest of Rs. 2%, for how much did he buy each share?

A

Rs. 160.

B

Rs. 170.

C

Rs. 175.

D

Rs. 180.

Soln.
Ans: a

If he bought each share at Rs. x, then his income is \$2/100\$ × x = 80 × \$4/100\$, solving, we get x = Rs. 160.

### Question 4

If my annual dividend income after investing Rs. 5750 in a stock at Rs. 115 is Rs. 250, then what % divided is paid by the company?

A

5%.

B

6%.

C

4%.

D

7%.

Soln.
Ans: a

Let the dividend be p%. The income is \$p/115\$ × 5750 = Rs. 250. Solving, we get p = 5%.

### Question 5

An amount of Rs. 4872 is invested in a stock with market value of Rs. 392. The investor earns Rs. 174. What is the dividend(%) of the stock?

A

14%.

B

16%.

C

17%.

D

19%.

Soln.
Ans: a

If investment is Rs. 4872 the earning is Rs. 174. So, if the investment is Rs. 392 the earning should be \$174/4872\$ × 392 = 14%. 