question from the book -ML aggarwal ( avichal publication)class 10th , chapter3, shares and dividends

This question was asked in 2004, it’s very important question.

it is given that A man invested Rs 45000 in 15% Rs 100 shares quoted at Rs 125.

When the market value of these shares rose to Rs 140, he sold some shares, just enough to raise Rs 8400.

so what is the approach to Calculate:

(i) The number of shares he still holds.

(ii) The dividend due to him on these shares.

explain it with explanation quoting formulas that can be used here.

Q no. 13, exercise 3, ML Publication, share and dividends

Since we have given that

Amount invested = Rs. 45000

Cost of share = Rs. 125

So, Number of shares purchased is given by

45000/125=360

Amount get = Rs. 8400

Cost of share = Rs. 140

So, Number of share sold is given by

8400/140=60

Number of shares left = 360 – 60 = 300

Dividend due to him on remaining shares is given by

(300*15/100)100=4500

Hence, the dividend is due to him is Rs. 4500