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Calculating Share Purchase Costs and Income

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deepaliwagh1987
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3 views2 pages

Calculating Share Purchase Costs and Income

Uploaded by

deepaliwagh1987
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Solutions to Share-related Questions

Q2: How much money will be required to buy 400, Rs.12.50 shares at a premium of Rs.1?

Face Value (FV) = Rs.12.50

Premium = Rs.1

Market Price (MP) = Rs.12.50 + Rs.1 = Rs.13.50

Number of shares = 400

Total Cost = 400 × 13.50 = Rs.5,400

Q3: How much money will be required to buy 250, Rs.15 shares at a discount of Rs.1.50?

Face Value (FV) = Rs.15

Discount = Rs.1.50

Market Price (MP) = Rs.15 - Rs.1.50 = Rs.13.50

Number of shares = 250

Total Cost = 250 × 13.50 = Rs.3,375

Q4: Find the annual income derived from 125, Rs.120 shares paying 5% dividend.

Face Value (FV) = Rs.120

Dividend Rate = 5%

Number of shares = 125

Annual Income per Share = (5/100) × Rs.120 = Rs.6

Total Annual Income = 125 × Rs.6 = Rs.750

Q5: A man invests Rs.3,072 in a company paying 5% per annum, when its Rs.10 share can be

bought for Rs.16 each.

Investment = Rs.3,072
Market Price (MP) = Rs.16

Face Value (FV) = Rs.10

Dividend Rate = 5%

Step 1: Number of shares bought = 3072 / 16 = 192 shares

Step 2: Annual Income per share = (5/100) × 10 = Rs.0.50

Total Income = 192 × 0.50 = Rs.96

Step 3: Yield % = (Income / Investment) × 100 = (96 / 3072) × 100 = 3.125%

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