Class 10 SELINA Solutions Maths Chapter 3 - Shares and Dividends
Shares and Dividends Exercise Ex. 3(A)
Solution 1(a)
Correct Option: (ii) Rs. 1100
No. of shares = 50
Face value of one share = Rs. 20
Market value of one share = Face value + 10% premium
Total money required = 22 ⨉ 50 = Rs. 1100
Solution 1(b)
Correct Option: (iii) Rs. 500
No. of shares = 50
Face value of one share = Rs. 20
Market value of one share = Face value - Discount
= 20 – 10 = 10
Total money required = 10 ⨉ 50 = Rs. 500
Solution 1(c)
Correct Option: (i) Rs. 1100
No. of shares = 50
Face value of one share = Rs. 20
Market value of one share = Rs. 22
Total money required = 22 ⨉ 50 = Rs. 1100
Solution 1(d)
Correct Option: (ii) Rs. 8000
No. of shares = 50
Face value of one share = Rs. 200
Market value of one share = Face value - Discount
Total money required = 160 ⨉ 50 = Rs. 8000
Solution 1(e)
Correct Option: (iv) 5%
No. of shares = 500
Face value of one share = Rs. 50
Dividend = Rs. 1,250
Let rate of dividend = d%
Solution 2
Solution 3
Solution 4
Solution 5
Market value of 1 share= Rs 16
Nominal value of 1 share= Rs 10
Money invested= Rs 3,072
Nominal value of 192 shares= 10 x 192= Rs 1,920
Solution 6
Total money invested= Rs 7,770
Nominal value of 1 share= Rs 100
Market value of 1 share= Rs 100 + Rs 5= Rs 105
Nominal value of 74 shares= 74 x 100= Rs 7,400
Solution 7
Nominal value of 1 share= Rs 50
Market value of 1 share= Rs 50 + Rs 10= Rs 60
Market value of 320 shares= 320 x 60 = Rs 19,200
Nominal value of 320 shares= 320 x 50= Rs 16,000
Solution 8
Total investment= Rs 8,800
Nominal value of 1 share= Rs 100
Market value of 1 share= Rs 110
Nominal value of 80 shares= 80 x 100= Rs 8,000
Let dividend%= y%
Solution 9
Nominal value of 1 share= Rs 24
Market value of 1 share= Rs 24+ 12% of Rs 24
= Rs 24+ Rs 2.88= Rs 26.88
Total investment= Rs 1,680
Nominal value of 62.5 shares= 62.5 x 24= Rs 1,500
Solution 10
Total investment= Rs 7,500
Nominal value of 1 share= Rs 100
No. of shares purchased= y
Nominal value of y shares= 100 x y= Rs(100y)
Dividend%= 10%
Dividend = Rs 500
Ans.
Shares and Dividends Exercise Ex. 3(B)
Solution 1(a)
Correct Option: (iii) 225
Face value of one share = Rs. 25
Rate of dividend % = 24%
Total dividend = Rs. 1350
Solution 1(b)
Correct Option: (ii) 25%
Face value of one share = Rs. 600
Market value of one share = Face value - Discount
Rate of dividend = 20%
Solution 1(c)
Correct Option: (ii) Rs. 5000
Total investment = Rs. 75000
Face value of one share = Rs. 10
Market value of one share = Rs. 15
Number of shares = 75000/15 = 5000
Rate of dividend = 10%
Dividend per share = 10% of 10 = 1
Total income = Dividend per share⨉ No. of shares = Rs. 5000
Solution 1(d)
Correct Option: (ii) Rs. 2400
Face value of one share = Rs. 120
Number of shares = 100
Rate of dividend = 20%
Dividend per share = 20% of 120 = 24
Total income = Dividend per share⨉ No. of shares = Rs. 2400
Solution 1(e)
Face value of one share = Rs. 20
Market value of one share = Face value – Discount
Number of shares = 200
Total investment = 16 ⨉ 200 = 3200
Rate of dividend = 10%
Dividend per share = 10% of 20 = 2
Total income = Dividend per share⨉ No. of shares = 400
Note: Correct option is not provided in the given question.
Solution 2
Nominal value of 1share= Rs100
Nominal value of 75 shares= 100 
75= Rs7,500
Dividend% = 9%
Let market price of 1 share= Rsy
Then market price of 75 shares= Rs75y
Profit% on investment= 12%
Solution 3
Nominal value of 1 share= Rs25
Market value of 1 share= Rs40
Profit% on investment= 4%
Then profit on 1 share = 4% of Rs40= Rs1.60
Ans.
No. of shares purchased= 60
Then dividend on 60 shares= 60 
Rs1.60= Rs96 Ans.
Solution 4
Nominal value of 1 share= Rs100
Market value of 1 share= Rs100+ Rs20= Rs120
Profit% on investment of 1 share=15%
Then profit= 15% of Rs120= Rs18
Ans.
Solution 5
Nominal value of 1 share= Rs50
Market value of 1 share= Rs50 - 10% of Rs50
= Rs50 - Rs5= Rs45
Profit % on investment= 20%
Then profit on 1 share= 20% of Rs45= Rs9
Ans.
Solution 6
Dividend% = 8%
Dividend = Rs2,840
Let nominal value of shares= Rsy
Solution 7
Nominal value of 1 share= Rs100
Market value of 1 share= Rs110
Let no. of shares purchased= n
Then nominal value of n shares= Rs(100n)
Dividend%= 12%
Dividend= Rs1,680
Then market value of 140 shares= 140 
110= Rs15,400 Ans.
Solution 8
Nominal value of 1 share= Rs60
Market value of 1 share= Rs60+ 25% of Rs60
= Rs60+ Rs15= Rs75
Let no. of shares purchased= n
Then nominal value of n shares= Rs(60n)
Dividend%= 11.2%
Dividend= Rs1,680
Then market value of 250 shares= 250 
75= Rs18,750 Ans.
Solution 9
Nominal value of 1 share= Rs20
Market value of 1 share= Rs20+Rs4= Rs24
No. of shares purchased= 400
Nominal value of 400 shares= 400 x 20= Rs8,000
(i)Market value of 400 shares= 400 x 24= Rs9,600
(ii)Dividend%= 12%
Dividend = 12% of Rs8,000
(iii)
Solution 10
Nominal value of 1 share= Rs20
Market value of 1 share= Rs20 - 20% of Rs20
= Rs20 - Rs4 = Rs16
No. of shares purchased= 400
Nominal value of 400 shares= 400 x 20= Rs8,000
(i)Market value of 400 shares= 400 x 16= Rs6,400
(ii)Return%= 12%
Income= 12% of Rs6,400
Solution 11
Nominal value of 1 share= Rs100
Nominal value of 10,000shares =10,000 x Rs100= Rs10,00,000
(i)Dividend%= 5%
Dividend = 5% of Rs10,00,000
(ii)Nominal value of 72 shares= Rs100 x 72= Rs7,200
Dividend= 5% of Rs7,200
(iii)Let market value of 1 share= Rs y
Then market value of 10,000 shares= Rs(10,000y)
Return%= 4%
Solution 12
Nominal value of 1 share= Rs100
Market value of 1 share= Rs100+40% of Rs100
= Rs100+Rs40= Rs140
No. of shares purchased= 1800
Nominal value of 1800 shares= 1800 x 100= Rs1,80,000
Market value of 1800 shares= 1800 x 140 = Rs2,52,000
(i)Dividend%= 15%
Dividend = 15% of Rs1,80,000
Ans.
(ii)
Solution 13
Nominal value of 1 share= Rs100
Market value of 1 share= Rs140
Total investment= Rs11,200
Then nominal value of 80 shares= 80 x 100= Rs8,000
(i)Dividend%= 6%
Dividend= 6% of Rs8,000
(ii)
Solution 14
1st case
Nominal value of 1 share= Rs100
Nominal value of 60 shares= Rs100 x 60= Rs6,000
Market value of 1 share= Rs100+ 60% of Rs100
= Rs100+ Rs60= Rs160
Market value of 60 shares= Rs160 x 60= Rs9,600 Ans.
(ii)Nominal value of 1 share= Rs50
Market value of 1 share= Rs50 - 4% of Rs50
= Rs50 - Rs2= Rs48
Ans.
(iii)Nominal value of 200 shares=Rs50 x 200= Rs10,000
Dividend%= 18%
Dividend= 18% of Rs10,000
Ans.
Solution 15
(i)
Nominal value of 1 share= Rs100
Nominal value of 10,000 shares= Rs100 x 10,000= Rs10,00,000
Dividend%= 8%
Dividend = 8% of Rs10,00,000
(ii)
Market value of 90 shares= Rs150 x 90= Rs13,500
Nominal value of 90 shares= Rs100 x 90= Rs9,000
Dividend = 8% of Rs9,000
(iii)
Solution 16
1st case
16%Rs.100 shares at 80 means;
Market value of 1 share= Rs80
Nominal value of 1 share= Rs100
Dividend= 16%
Income on Rs80= 16% of Rs100= Rs16
Income on Rs1
2nd case
20% Rs.100 shares at 120 means;
Market value of 1 share= Rs120
Nominal value of 1 share= Rs100
Dividend= 20%
Income on Rs120= 20% of Rs100= Rs20
Income on Rs1
Then 16% Rs.100 shares at 80 is better investment.
Solution 17
(i)
1st firm
Market value of 1 share= Rs120
Nominal value of 1 share= Rs100
Dividend= 5%
Income on Rs120= 5% of Rs100= Rs5
Income on Rs1
2nd firm
Market value of 1 share= Rs132
Nominal value of 1 share= Rs100
Dividend= 6%
Income on Rs132= 6% of Rs100= Rs6
Income on Rs1
Then investment in second company is giving better return Ans.
(ii)
Income on investment of Rs26,400 in first firm
Income on investment of Rs26,400 in second firm
Solution 18
1st case
Nominal value of 1 share= Rs10
Nominal value of 360 shares= Rs10 x 360= Rs3,600
Market value of 1 share= Rs21
Market value of 360 shares= Rs21 x 360= Rs7,560
Dividend%= 12%
Dividend= 12% of Rs3,600
2nd case
Nominal value of 1 share= Rs5
Market value of 1 share= Rs3.50
Nominal value of 2160 shares=Rs5 x 2160= Rs10,800
Dividend%= 4.5%
Dividend= 4.5% of Rs10,800
Annual change in income= Rs486 - Rs432
= Rs54 increase Ans.
Solution 19
1st case
Nominal value of 1 share= Rs20
Nominal value of 400 shares= Rs20 x 400= Rs8,000
Market value of 1 share= Rs18
Market value of 400 shares= Rs18 x 400= Rs7,200
Dividend%= 5%
Dividend= 5% of Rs8,000
2nd case
Nominal value of 1 share= Rs10
Market value of 1 share= Rs12
Ans.
Nominal value of 600 shares=Rs10 x 600= Rs6,000
Dividend%= 7%
Dividend= 7% of Rs6,000
Annual change in income= Rs420 - Rs400
= Rs20 increase Ans.
Solution 20
For A
Total investment= Rs16,000
Nominal value of 1 share= Rs100
Market value of 1 share= Rs80
Nominal value of 200 shares= Rs100 x 200= Rs20,000
Dividend%= 3%
Dividend = 3% of Rs20,000
For B
Total investment= Rs16,000
Nominal value of 1 share= Rs10
Market value of 1 share= Rs10
Nominal value of 1600shares= 10 x 1600= Rs16,000
Dividend received by B= Dividend received by A
= Rs600
Shares and Dividends Exercise TEST YOURSELF
Solution 1(a)
Correct Option: (iii) 60
Face value of one share = Rs. 100
Market value of one share = Face value + Premium
Total investment = Rs. 7200
Number of shares = Total investment ÷ market value of one share
= 7200 ÷ 120 = 60
Solution 1(b)
Correct Option: (ii) Rs. 2000
Case 1:
Face value of one share = Rs. 100
Market value of one share = Face value – Discount = Rs. 80
Rate of dividend = 10%
Number of shares = 100
Total dividend = (10% ⨉ 100)⨉100 = Rs. 1000
Case 2:
Face value of one share = Rs. 100
Market value of one share = Rs. 120
Rate of dividend = 10%
Number of shares = 100
Total dividend = (10% ⨉ 100)⨉100 = Rs. 1000
Overall dividend earned = Rs. 2000
Solution 1(c)
Correct Option: (i) Rs. 5600
Total money required = Quoted (market) price ⨉ no. of shares
=80⨉70
= Rs. 5600
Solution 1(d)
Correct Option: (i) Rs. 1000
Total investment = Rs. 20000
Price of one share = Rs. 50
Total shares bought = 20000÷50 = 400 shares
Total dividend earned = 5%⨉50⨉400
= Rs. 1000
Solution 1(e)
Correct Option: (iv) 10%
Face value of one share = Rs. 500
Market value of one share = Rs. 400
Dividend on one share = 8% ⨉ 500 = Rs. 40
Solution 2
Solution 3
Solution 4
Solution 5
Solution 6
Solution 7
Solution 8
(i)
1st firm
Nominal value of 1 share= Rs10
Market value of 1 share= Rs13
Dividend%= 5%
Dividend = 5% of Rs10= Rs0.50
2nd firm
Nominal value of 1 share= Rs10
Market value of 1 share= Rs16
Dividend%= 6%
Dividend = 6% of Rs10= Rs0.60
Then first firm is paying better than second firm.
(ii)
Let money invested in each firm= Rs y
For 1st firm
Total dividend 
For 2nd firm
Total dividend 
Given- difference of both dividend= Rs30
Total money invested in both firms= Rs31,200 
2
= Rs62,400 Ans.
Solution 9
(i)
Total investment= Rs45,000
Market value of 1 share= Rs125
Nominal value of 360 shares= Rs100 x 360= Rs36,000
Let no. of shares sold= n
Then sale price of 1 share= Rs140
Total sale price of n shares= Rs8,400
Then 
The no. of shares he still holds= 360 - 60= 300
(ii)
Nominal value of 300 shares= Rs100 
300= Rs30,000
Dividend%= 15%
Dividend = 15% of Rs30,000
Solution 10
(i)Nominal value of 1 share= Rs150
Dividend%= 12%
Dividend on I share= 12% of Rs150
Let market value of 1 share= Rs y
Return%= 10%
(ii)when dividend is Rs18, then investment is Rs180
When dividend is Rs1,350, then investment
=Rs 13, 500
Solution 11
Total investment= Rs50,760
Let 1st part= Rs y
2nd part= Rs(50,760-y)
For 1st part
Nominal value of 1 share= Rs100
Market value of 1 share= Rs100 - 8% of Rs100
= Rs100 - Rs8= Rs92
Dividend%= 8%
Dividend on 1 share= 8% of Rs100= Rs8
Total dividend
For 2nd part
Nominal value of 1 share= Rs100
Market value of 1 share= Rs100 + 8% of Rs100
= Rs100 + Rs8= Rs108
Dividend%= 9%
Dividend on 1 share= 9% of Rs100= Rs9
Total dividend
Given that both dividend are equal
Then 
1st part= Rs24,840
2nd part= Rs50760 - Rs24,840= Rs25,920 Ans.
Solution 12
1st case
Total investment= Rs4,500
Market value of 1 share= Rs15
Nominal value of 1 share= Rs10
Nominal value of 300 shares= Rs10 
300= Rs3,000
Dividend=8% of Rs3,000
Sale price of 1 share= Rs30
Total sale price= Rs30 x 300= Rs9,000 Ans.
(ii)new market price of 1 share= Rs125
Ans.
(iii)
New nominal value of 1 share= Rs100
New nominal value of 72 shares= Rs100 x 72= Rs7,200
Dividend%= 12%
New dividend= 12% of Rs7,200
Change in annual income= Rs864 - Rs240
= Rs624 Ans.
Solution 13
Rate of dividend = 8%
Investment = Rs.52000
Market Rate = Rs.100 - 20 = Rs.80
No. of shares purchased = 
(i) Annual dividend = 650 × 8 = Rs.5200 Ans.
(ii) On selling, market rate = Rs.100+20 = Rs.120
Sale price = 650 × 120 = Rs.78000
Profit = Rs.78000 - Rs.52000 = Rs.26000
Total gain = 26000 + 5200 = Rs.31200 Ans.
Solution 14
Solution 15
Solution 16
Face value of each share = Rs. 50
Dividend(%)=10%
Dividend on 1 share = 
∴Number of shares bought = 
