InterviewSolution
Saved Bookmarks
InterviewSolution
| 1. |
A Man Sells 4000 Common Shares Of A Company X (each Of Par Value Rs. 10), Which Pays A Dividend Of 40% At Rs. 30 Per Share. He Invests The Sale Proceeds In Ordinary Shares Of Company Y (each Of Par Value Rs. 25) That Pays A Dividend Of 15%. If The Market Value Of Company Y Is Rs. 15, Find The Number Of Shares Of Company Y Purchased By The Man? |
|
Answer» MARKET Value of COMPANY X (his selling price) = Rs.30 Total shares sold = 4000 Amount he gets = Rs.(4000 × 30) He invests this amount in ordinary shares of Company Y Market Value of Company Y(His purchasing price) = 15 Number of shares of company Y which he purchases = 4000×30/15=8000. market Value of Company X (his selling price) = Rs.30 Total shares sold = 4000 Amount he gets = Rs.(4000 × 30) He invests this amount in ordinary shares of Company Y Market Value of Company Y(His purchasing price) = 15 Number of shares of company Y which he purchases = 4000×30/15=8000. |
|