InterviewSolution
Saved Bookmarks
InterviewSolution
This section includes InterviewSolutions, each offering curated multiple-choice questions to sharpen your knowledge and support exam preparation. Choose a topic below to get started.
| 1. |
The total investment made in buying Rs. X shares at a premium of 25% is Rs. 125 X. The number of shares bought is _______.A. 500B. 250C. 125D. 100 |
|
Answer» Correct Answer - D Number of share `=("Total investment")/(MV)` |
|
| 2. |
An investment in buying 400 shares of a company at a premium of Rs.2.50 earns an income of `9.6%` per annum. If the rate of dividend paid by the company is `12%`, then find the face value of each share. |
| Answer» Correct Answer - Rs.10 | |
| 3. |
Ameer invests Rs.24,200 in buying Rs.100 shares of a company avilable at a premium of `10%`. If the company pays a dividend of `15%`, then find the number of shares bought by Ameer, and the rate of return on his investment. |
|
Answer» Face value of each share = Rs.100 The shares are available at a permium of `10%`, i.e., `10%` of 100 - Rs.10. Market value of each share = Rs.(100 + 10) = Rs.110 Money invested = Rs.24,200 `"Number of shares bought"=("Total investment")/("Market value of each share")` `=(24200)/(110)=220` `"Dividend paid "=15%` `"Annual income from each share "=15%" of 100 = Rs. 15"` `rArr" Annual income from 220 shares"="Rs."(220xx15)="Rs."3300` `"The rate of return on his investment "=("Annual income")/("Investment")xx100%` `=(3300)/(24200)xx100%` `=(150)/(11)%=13(7)/(11)%` `therefore" Ameer gets a return of "13(7)/(11)%" per annum on his investment".` |
|
| 4. |
Goutham invested Rs.4000 to buy Rs.125 shares of type from a company and invested Rs.4800 to buy Rs.120 shares of type B from it. He obtains `8%` dividend from A and `10%` dividend from B. Find the total annual dividend he carried if the market value of each equals its face value. (in Rs.)A. 600B. 750C. 800D. 1000 |
|
Answer» Correct Answer - C (i) Find the dividend received per share each case. (ii) Total dividend from share A is `8%` of Rs.4000. (iii) Total dividend from share B is `10%` of Rs.4800. |
|
| 5. |
Prasad invested Rs.4000 to buy type A shares of a company. He invested in the same company to buy Rs.4000 worth type B shares at face value. Market value of A equals equals face value of B. If he bought a total 64 shares of both, how many type A shares did the buy?A. 6B. 24C. 32D. 40 |
| Answer» Correct Answer - C | |
| 6. |
Dividend is always calculated on the _______ of a share. |
| Answer» Correct Answer - face value | |
| 7. |
If Rs.4000 more was invested in share A, 20 more shares can be purchased. If Rs.4000 less was invested in A, 2) less shares can be purchased. Find the market value of A. (in Rs.)A. 100B. 150C. 200D. 300 |
|
Answer» Correct Answer - C Obtain the relation between the amount invested and the number of shares. |
|
| 8. |
Kira invests in the shares of a company. If he buys 48 shares more, he will invest Rs.1200 more. If he buys 40 shares less, the total face value of his shares will be Rs.800 less. He must buy each share ________.A. at parB. below parC. above parD. Cannot be determined |
|
Answer» Correct Answer - C Market value of each share (in Rs.)`=(1200)/(48)=25` `thereforem=25` `"Face value of each share (in Rs.)"=(800)/(40)=20` `thereforef=20` `thereforem gt 25` `therefore " Kiran bought each share above par"`. |
|
| 9. |
Praveen made aninverstment of Rs. 54,000 in 10 %, Rs. 100 shares at Rs. 90, while Vijay made an investment of Rs. 60,000 in 8%, Rs. 150 shares at Rs. 120. If both of them sold their shares at the end of the year for Rs. 110 each, then their individual earnings are ________. respectively.A. Rs. 12,000 and Rs. 12,000B. Rs. 18,000 and Rs. 1000C. Rs. 12,000 and Rs. 1000D. Rs. 18,000 and Rs. 1200 |
|
Answer» Correct Answer - B (i) Find the dividends received by two persons. (ii) Number of shares `=("Total investment")/("MV of each share")`. (iii) Find their dividends by using `FV` and rate of dividend. (iv) Find their profit/loss obtained by selling each at Rs. 110. |
|
| 10. |
_____ is the annual profit distributed among the shareholders. |
| Answer» Correct Answer - Dividend | |
| 11. |
A person who is allotted shares or who buys shares is called a _______ of the company. |
| Answer» Correct Answer - Shareholder | |
| 12. |
Pardhiv bought two types of shares A and B worth Rs.5000 each. If he bought 25 type A shares and 20 type B shares, then the difference between their face value is _______. |
| Answer» Correct Answer - Rs.50 | |
| 13. |
If Rs. 25,000 more invested, then 400 more shares can be purchased. Find the market value of each share.A. Rs. 62.50B. Rs. 77.50C. Rs. 85.00D. Cannot be determined |
|
Answer» Correct Answer - A From the given data, 400 shares can be purchased with aninvestment of Rs. 25,000. `:.` Market value of each shares (in Rs.) `=(25,000)/4000-62.50`. |
|
| 14. |
The value at which a share is brought or sold in the market is called its _____. |
| Answer» Correct Answer - market value | |
| 15. |
Shares worth Rs. 150 each were bought at Rs. 180. Which of the following is necessarily true ?A. Each share was bought at Rs. 30 discount.B. Each share was bought at Rs. 30 premium.C. Each share was bought at 30% discount.D. Each share was bought at 30% premium. |
|
Answer» Correct Answer - B `FV=` Rs. `150` `MV=` Rs. `180` Premium `=MV-FV=` Rs. `30` is true. |
|
| 16. |
A company has 5 lakh shares of Rs. 15 each. The capital of the company is _________. |
| Answer» Correct Answer - Rs. 7,500,000 | |
| 17. |
Is the market value of a share always constant ? |
| Answer» Correct Answer - No | |
| 18. |
Mrs Pravallika has 100 shares worth Rs. 100 at a premium of Rs. 100. If the rate of dividend is 10%, then find the total dividend received by her at the end of a year. (in Rs.)A. Rs. 4000B. Rs. 3000C. Rs. 2000D. Rs. 1000 |
|
Answer» Correct Answer - D `FV=` Rs. 100 Rate of dividend `=10%` Number of shares `=100` Dividend from each share (in Rs.) `=10%` of `100=10` Total dividend from 100 shares (in Rs.) `=100xx10=1000`. |
|
| 19. |
A man has 62 shares of Rs. 100 each, dividend is 7.5 % per annum. If he wants to increase his annual income by Rs. 150, then he should buy ______ more shares.A. 20B. 40C. 10D. 30 |
|
Answer» Correct Answer - A Find annual income from one share. |
|
| 20. |
Ms Meenakshi invested Rs. 32,400 in buying certain shares of a company. If the amount of dividend received by her is Rs. 4860, then find the rate of return.A. 0.15B. 0.12C. 0.14D. 0.13 |
|
Answer» Correct Answer - A Total investment = Rs. 32,400 Dividend `= Rs. 4860` Rate of return `=(4860)/32400xx100%=15%`. |
|
| 21. |
The dividend received from 10 % Rs. 125 shares at Rs. 150, is Rs. 1875. Find the number of shares.A. 125B. 150C. 270D. 135 |
|
Answer» Correct Answer - B `FV= Rs. 125` `MV= Rs. 150` Rate of dividend `=10%` Dividend from each shares `=10%` of Rs. `125` `= Rs. 12.5` Given, total dividend `= Rs. 1875`. The number of shares `=1875/12.5=150`. |
|
| 22. |
Find the market value of 200 shares worth Rs. 120, each bought at a discount of Rs. 20 . (in Rs.)A. 28000B. 24000C. 26000D. 20000 |
|
Answer» Correct Answer - D The number of shares `=200` Face value (FV) of each share `= Rs. 120` Discount on each share `= Rs. 20` Market value of each share `=FV-` Discount = Rs. 120- Rs. 20 = Rs. 100 `:.` Market value of 200 shares (in Rs.)`=200xx100= Rs. 20,000`. |
|
| 23. |
If Rs.150 share is quoted at a premium of Rs.10, then the market value of the share is Rs. _______. |
| Answer» Correct Answer - Rs.160 | |
| 24. |
If a Rs. 180 share is quoted at a premium of Rs. 27, then the market value of each share is _______. |
| Answer» Correct Answer - Rs. 207 | |
| 25. |
Bhaskar bought Rs.130 shares at a discount of Rs.10. Find the number of shares he bought for Rs.15,600.A. 120B. 130C. 140D. 150 |
|
Answer» Correct Answer - B Find the market value of each share. |
|
| 26. |
If a Rs. 100 share is available at per, then its market value is _______. |
| Answer» Correct Answer - Rs. 100 | |
| 27. |
Rohit invested in two types of shares, P and Q, of a company. He purchased P at `x%` discount and Q at `x%` premium. If the total market value of each is equal, find the rate of effective discount (in per cent).A. `0.1%`B. `(x^(2))/(400)%`C. `(x^(2))/(200)%`D. `(x^(2))/(100)%` |
|
Answer» Correct Answer - D (i) `"Effective discount"=("Total discount")/("Total market value")xx100` (ii) Let the market value of each share be m. (iii) `FV_(1)=(100m)/(100+x)and FV_(2)=(100m)/(100-x)` (iv) Find the total face value which is less than the total market value. (v) Effective discount. `=("(Total FV"-"Total MV)")/("Total FV")xx100`. |
|
| 28. |
Ashok bought Rs.135 shares of a company at premium. If the company provides the same premium amount as discount, then its market value will decrease by `50%`. Find the premium. (in Rs.)A. 40B. 45C. 50D. 55 |
|
Answer» Correct Answer - B Let premium be Rs.x. Find the market value of a share. |
|
| 29. |
Dhanik invests a certain amount in 300,Rs.75 shares of a company paying `10%` divident. Find the his annual income from this investment. |
|
Answer» Face value of the share = Rs.75 Number of shares bought = 300 Dividend = `10%` `"Annual income from each share"="Rs."[(10)/(100)(75)]="Rs."7.50`. `therefore" Annual income from 300 shares"="Rs."(7.50xx300)="Rs."2250.` |
|
| 30. |
Shares A and B have face values of Rs.100 each. A is sold at Rs.x premium, and B is sold at Rs.x discount. The rate of return from each is `x%`. The sum of the annual dividends from both is Rs.10. Find x.A. 4B. 8C. 5D. 10 |
|
Answer» Correct Answer - C (i) Find the annual dividend from A and B. (ii) MV of share A = 100 + x. MV of share B = 100 - x (iii) Dividend from share A = `x%` of `(100+x)`, where `x%` is the rate of return and `(100+x)` is the MV. (iv) Similarly, find dividend from share B. (v) Equate total dividend in x to 10. |
|
| 31. |
A company is selling shares at Rs.120 each. Each has a par vlaue of Rs.100. The premium percentage is _______. |
| Answer» Correct Answer - `20%` | |
| 32. |
Shyam had some shares. He sold them at Rs.12 discount. He realized Rs.800 less than what he would have realized if he had sold them at Rs.8 premium. Find the number of shares he sold.A. 40B. 50C. 60D. 80 |
|
Answer» Correct Answer - A Charge in the price of a share is Rs.20. |
|
| 33. |
Find the annual income derived from an investment of Rs. 18,000 in Rs. 150 shares available at Rs. 180 of a company paying 11% dividend. |
| Answer» Correct Answer - Rs. 1650 | |
| 34. |
Which is a better investment, (A) Rs. 60 shares at Rs. 75 paying a dividend of 10% or (B) Rs. 100 share at Rs. 120 paying a dividend of 12% ? |
| Answer» Correct Answer - Rs. 100 shares at Rs. 120 paying a dividend of 12% | |
| 35. |
The authorized capital of a company is Rs.50,000 and the number of shares is 1000. If the paid-up capital is Rs.25,000, then the paid-up value of each share is Rs.______. |
| Answer» Correct Answer - 25 | |
| 36. |
The authorized capital of a company is Rs.150,000 and the number of shares is 500. What is the face value of each shares is 500. What is the face value of each share ? If the paid-up capital is Rs.60,000, then what is the paid-up value of each share? |
| Answer» Correct Answer - Rs.1200 | |
| 37. |
When shares of face value Rs.50 each are sold above par at Rs.10 premium, then the money required to buy 30 such shares it _______. |
| Answer» Correct Answer - Rs.1800 | |
| 38. |
Mr Balu inversted Rs. 15,000 in 10%, Rs. 100 shares at Rs. 120, and also invested Rs. 24,000 in 12%, Rs. 120 shares at Rs. 100. The total earnings from the two investment is _________.A. Rs. 4500B. Rs. 4706C. Rs. 4700D. Rs. 4509 |
|
Answer» Correct Answer - B On the first Investment : Number of shres `=15,000/120=125` Divdend earned `=(10/100xx125) 125=` Rs. `1250` On the second Investment : Number of shares `=(24,000)/100=240` `implies` Dividend earned `=240xx12/100xx120=`Rs. `3456` Total earnings `= Rs. 4706`. |
|
| 39. |
A company has shares of face value Rs.50 in which Rs.25 is paid-up and the paid-up capital is Rs.10,000. Then, the authorized capital is _________. |
| Answer» Correct Answer - RS.20,000 | |
| 40. |
Face value and market value of a share are Rs.100 and Rs.120 respectively, and the rate of return is `10%`. Then, dividend is _______ (in %). |
| Answer» Correct Answer - `12%` | |
| 41. |
Mr Gellard invested Rs. 16,000 in 7%, Rs. 200 shares at Rs. 160. He sold the shares at Rs. 150 each. He incurred a _________.A. loss of Rs. 1300B. loss of Rs. 1000C. proft of Rs. 1000D. profit of Rs. 1200 |
|
Answer» Correct Answer - B (i) Number of shares `=("Total investment")/(MV)` (ii) Number of shares `=("Total investment")/("MV of each share")`. (iii) `SP` of total shares = Rs. `150 xx` Number of shares. |
|
| 42. |
Ramesh bought 30 Rs.200 shares of a company available at a - premium of Rs.25. Find the investment made by Ramesh, and also the rate of interest (returning gets on his money if the company pays a dividend of `8%` per annum. |
| Answer» Correct Answer - Rs.6750; `7.11%` | |
| 43. |
The market value of a share is Rs. 90, itsface value is Rs. 80, and the dividend is 8%. The rate of return is ___________.A. `8 1/3 %`B. `7 1/9 %`C. `6 2/3 %`D. `5 2/3 %` |
|
Answer» Correct Answer - B `MVxx` Rate of ruturn = Rate of dividend `xx FV`. |
|
| 44. |
Rakesh invested Rs.27,000 in Rs.27 shares of a company which pays a dividend of `10%`. Find the market value of each share if he derives an annual income of Rs.540 from this investment, also find the number of shares he bought. |
| Answer» Correct Answer - Rs.135; 200 | |
| 45. |
If Rs. 56,000 is invested in buying Rs. 120 shares at a discount of Rs. `16 2/3 %`, then find the number of shares bought is _______.A. 2800B. 560C. 280D. 400 |
|
Answer» Correct Answer - B Number of share `=("Amount invested")/(MV)` |
|
| 46. |
Vamsi invested some amount buying Rs. 150 shares of a company which pays dividend at the rate of 8% per annum. If he gets back 10% per annum on his investment, then the value at which he bought the shares is ______.A. Rs. 100B. Rs. 120C. Rs. 180D. Rs. 210 |
|
Answer» Correct Answer - B (i) Same as Question No. 6 Use the following formula to find the MV. `FVxx` Rate of dividend `=MVxx` Rate of return. |
|
| 47. |
Rishi bought Rs. 50 shares of a company for Rs. 75 each. The company pays a dividend of 12% per annum. The effective rate of return on his investments is _________.A. 0.06B. 0.08C. 0.09D. 0.1 |
|
Answer» Correct Answer - B (i) Same as Question No. 6 Use the following formula to find the rate of return. `FVxx` Rate of dividend `=MVxx` Rate of return. |
|
| 48. |
Teja brought Rs. 80 shares of a company which pays 15% dividend. If the rate of return is 12%, then the market price is _______.A. Rs. 90B. Rs. 80C. Rs. 100D. Rs. 99 |
|
Answer» Correct Answer - C `MVxx` Rate of return = Rate of dividend `xxFV`. |
|
| 49. |
Raju bought Rs.40 shares of a company which had a market value of Rs.60. He received a dividend of `30%`. How much more (or) less would have been his annual dividend per share, if his dividend rate and rate of return were interchanged?A. Rs.2 more per share.B. Rs.3 more per share.C. Rs.4 less per share.D. Rs.6 less per share. |
|
Answer» Correct Answer - C (i) Find the dividend from each share and rate of retaun. (ii) First of all, find rate of return by using the following formula, `"FV"xx"Rate of divident"="MV"xx"Rate of return."` (iii) Let x be the rate of return. Now, find `30%` of `40-x%` of 40. |
|
| 50. |
Mrs karuna invested some amount in buying Rs. 120 shres of a company which pays a dividend at the rate of 10% per annum. If she gets back 8% per annum on her investment, then the value at which she bought the shares is _________.A. Rs. 100B. Rs. 150C. Rs. 180D. Rs. 120 |
|
Answer» Correct Answer - B Rate of dividend `xx FV=` Rate of return `xxMV` `10xx120=8xx` Market value `:.` Market value `= Rs. 150` |
|