Stocks And Shares - Aptitude MCQ Questions and Solutions with Explanations

A man buys Rs. 50 shares in a company which pays 10% dividend. If the man gets 12.5% on his investment, at what price did he buy the shares ?

A) Rs. 35.50 B) Rs. 40 C) Rs. 48 D) Rs. 52

Discuss

Answer & Solution

Answer: Option B

Solution:

Dividend on 1 share
= Rs. $$\left( {\frac{{10}}{{100}} \times 50} \right)$$
= Rs. 5
Rs. 12.50 is an income on an investment of Rs. 100
Rs. 5 is an income on an investment of :
= Rs. $$\left( {100 \times \frac{2}{{25}} \times 5} \right)$$
= Rs. 40.
∴ Cost of 1 share = Rs. 40

A man invests in a 16% stock at 128. The interest obtained by him is ?

A) 8% B) 12% C) 12.5% D) 16%

Discuss

Answer & Solution

Answer: Option C

Solution:

By investing Rs. 128, income derived = Rs. 16
By investing Rs. 100, income derived
= Rs. $$\left( {\frac{{16}}{{128}} \times 100} \right)$$
= Rs. 12.5
∴ Interest obtained = 12.5%

A man invested Rs. 14400 in Rs. 100 shares of a company at 20% premium. If the company declares 5% dividend at the end of the year, then how much does he get ?

A) Rs. 500 B) Rs. 600 C) Rs. 650 D) Rs. 720

Discuss

Answer & Solution

Answer: Option B

Solution:

Number of shares
= $$\left( {\frac{{14400}}{{120}}} \right)$$
= 120
Face value
= Rs. (100 × 120)
= Rs. 12000
Annual income
= Rs. $$\left( {\frac{5}{{100}} \times 12000} \right)$$
= Rs. 600

A wants to secure an annual income of Rs. 1500 by investing in 15% debentures of face value Rs. 100 each and available for Rs. 104 each. If the brokerage is 1%, then the sum of money he should invest is -

A) Rs. 10504 B) Rs. 10784 C) Rs. 15000 D) Rs. 19642

Discuss

Answer & Solution

Answer: Option A

Solution:

Income on each debenture
= 15% of Rs. 100
= Rs. 15
Number of debentures required
= Rs. $$\left( {\frac{{1500}}{{15}}} \right)$$
= Rs. 100
Cost of each debenture
= Rs. (104 + 1% of 104)
= (104 + 1.04)
= Rs. 105.04
∴ Total investment
= Rs. (105.04 × 100)
= Rs. 10504