Q 1-Find the cash realised by selling Rs. 2440, 9.5% stock at 4 discount (brokerag 14%14%)`

A - Rs. 2258

B - Rs. 2298

C - Rs. 2348

D - Rs. 2398

Answer - B Explanation "By selling Rs. 100 sock cash realised = Rs. [(100−40)−14] = Rs. 383/4 By selling Rs 2400 stock , cash realised = Rs. ([383 / 4] × [1/100] × 2400) = Rs. 2298."

Q 2-Find the cost of Rs. 6400 , 10 % stock at 15 discount ?

A - 5440

B - 5450

C - 5460

D - 5470

Answer - A Explanation "Cost of Rs. 100 stock = Rs . (100 - 15) = Rs. 85 Cost of Rs. 6400 stock = Rs. ([85/100] × 6400) = Rs. 5440"

Q 3-Find the cost of Rs. 4500, 8.5% stock at 4 premium ?

A - Rs. 4560

B - Rs. 4640

C - Rs. 4680

D - Rs. 4780

Answer - C Explanation "Cost of Rs. 100 stock = Rs. (100 + 4) = Rs. 104 Cost of Rs. 4500 stock = Rs. ([104 / 100] × 34500) = Rs. 4680"

Q 4-Find the cost of Rs. 7200, 8% stock at 90;

A - 6240

B - 6450

C - 6480

D - 6580

Answer - C Explanation "Cost of Rs. 100 stock = Rs. 90 Cost of Rs. 7200 stock = Rs ([90/100] × 7200) = Rs. 6480"

Q 5-Sakshi invests a part of Rs. 12,000 in 12% stock at Rs. 120 and the remainder in 15% stock at Rs. 125. If his total dividend per annum is Rs. 1360, how much does he invest in 12% stock at Rs. 120?

A - Rs. 4000

B - Rs. 4500

C - Rs. 5500

D - Rs. 6000

Answer - A Explanation "Let investment in 12% stock be Rs. x. Then, investment in 15% stock = Rs. (12000 - x). [12 / 120] * x + [15 / 125] x (12000 – x) = 1360. [x / 10] + [3 / 25(12000 – x) = 1360. 5x + 72000 – 6x = 1360 x 50. x= 4000"

Q 6-A man invested Rs. 4940 in Rs. 10 shares quoted at Rs. 9.50. If the rate of dividend be 14%, his annual income is

A - Rs.728

B - Rs.648

C - Rs.720

D - Rs.622

Answer - A Explanation "Market Value of a share = Rs.9.50 Investment = Rs.4940 Number of shares = 4940/9.50 = 520 Face Value of a share = Rs.10 dividend = 14% dividend per share = (10×14)100 = Rs. 1.4dividend per share = (10×14) / 100 = Rs. 1.4 His annual income = 520 x 1.4 = Rs.728"

Q 7-Find the cost of 96 shares of Rs. 10 each at (3/4) discount, brokerage being(1/4) per share.

A - 812

B - 912

C - 1012

D - 1112

Answer - B Explanation "Cost of 1 share = Rs. [(10-(3/4)) + (1/4)] = Rs. (19/2). Cost of 96 shares = Rs. [(19/2)*96] = Rs. 912."

Q 8-Find the cash required to purchase Rs. 3200, 7(1/2) % stock at 107(brokerage (1/2) %).

A - 3440

B - 4440

C - 5440

D - 6440

Answer - A Explanation "Cash required to purchase Rs. 100 stock = Rs (107+(1/2)) = Rs. (215/2). Cash required to purchase Rs. 100 stock = Rs [(215/2)*(1/100)*3200] = Rs. 344"

Q 9-By investing Rs. 1800 in 9% stock, Syam earns Rs. 120. The stock is then quoted at

A - Rs.135

B - Rs. 96

C - Rs. 85

D - Rs. 122

Answer - A Explanation "Assume that face value = Rs.100. Dividend per share = Rs.9 (as it is a 9% stock) By investing Rs. 1800, he earns Rs.120 Investment needed to earn Rs.9 = [1800 × 9] / 120 = Rs. ie, stock is then quoted (then market value) = Rs.135"

Q 10-Arun invested Rs. 333000 in 5½ % stocks at 110 .If brokerage is Rs.1, what is his annual income from his investment.

A - Rs.16500

B - Rs.12500

C - Rs.16000

D - Rs.18000

Answer - A Explanation "Investment = Rs.333000 Since face value is not given, we can take it as Rs.100 and dividend per share = Rs.11/2 Market Value = 110 + 1 = 111 Number of shares purchased = 333000/111 = 3000 Total income = 3000 × [11/2] = Rs."

Q 11-Find the annual dividend received by Nishita from 1200 preferred shares and 3000 common shares both of par value Rs. 50 each if the dividend paid on preferred shares is 10% and semi-annual dividend of 3Â½ % is declared on common shares.

A - Rs. 18500

B - Rs. 16500

C - Rs. 14500

D - Rs. 19500

Answer - B Explanation "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 x 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.74 Total semi-annual dividend = 74×3000 = Rs.5250 Annual dividend = Rs.5250 x 2 = Rs.10500 Total dividend on all all shares(preferred and common) = 6000 + 10500 = Rs.16500"

Q 12-A 12% stock yielding 10% is quoted at:

A - Rs. 83.33

B - Rs. 110

C - Rs. 112

D - Rs. 120

Answer - D Explanation "To earn Rs. 10, money invested = Rs. 100. To earn Rs. 12, money invested = Rs. [100/10] x 12= Rs. 120. Market value of Rs. 100 stock = Rs. 120."

Q 13-A company has issued 500 preferred shares and 400 common shares both of par value Rs. 100 each. The dividend on a preferred share and a common share is 8% and 12%, respectively. The company had a total profit of 150000 rupees out of which some amount was kept in reverse fund and the remaining disturbed as dividend. Find the amount kept in reserve fund.

A - Rs.141200

B - Rs.160000

C - Rs.7200

D - Rs.182200

Answer - A Explanation "Face value of each preferred share = 100 Dividend per preferred share = [100 x 8] / 100 Total dividend in all preferred shares = [500 × 100 × 8] / 100=Rs.4000 Face value of each common share = 100 Dividend per common share = [100 × 12] / 100 Total dividend in all common shares = [400 × 100 × 12]/100 = Rs.4800 Total dividend = Rs.4000 + Rs.4800 = Rs.8800 amount kept in reserve fund = Rs.150000 - Rs.8800 = Rs.141200"

Q 14-Find the income on 7½ % stock of Rs. 2000 purchased at Rs. 80.

A - Rs.6

B - Rs.160

C - Rs.148

D - Rs.150

Answer - D Explanation "Face Value of the stock = Rs.2000 Dividend is 7(1/2)%=15/2 % of the face value Dividend = [2000 × 15] / [2 × 100] = Rs.150"

Q 15-To produce an annual income of Rs. 800 from a 8% stock at 90, the amount of stock needed is:

A - Rs.10000

B - Rs.14400

C - Rs.10800

D - Rs.16000

Answer - A Explanation "Since face value is not given, take it as Rs.100. As it is an 8% stock, income (dividend) per stock = Rs.8 ie, For an income of Rs.8,amount of stock needed = Rs.100 For an income of Rs.800, amount of stock needed = [100 × 800] / 8=10000"