Mukul invests Rs 9000 in a company paying a dividend of 6% per annum when a share of face value Rs 100 stands at Rs 150. What is his annual income? He sells 50% of his shares when the price rises to Rs 200. What is his gain on his transaction?
Answer & explanation
Correct answer: option 4
The correct answer is option (4) : ₹1500
Total investment = $₹9000$
Market price of 1 share $= ₹ 150$
∴ No. of shares bought $=\frac{9000}{150}= 60$
Dividend on 1 share = 6% of $₹100 = ₹6$
∴ Dividend on 60 shares $= ₹ (6×60) = ₹360$
He sold 50% i.e 30 shares at ₹ 200
Selling value of 30 shares at ₹200
$= ₹ (30 ×200)$
$=₹600$
Purchasing value of 30 shares $=₹(150×30)$
$=₹4500$
Gain on this transaction $= ₹ 6000- ₹4500$
$= ₹ 1500$