# 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

1^{st} 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

1^{st} 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

2^{nd} 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)

1^{st} 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

2^{nd} 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

1^{st} 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

2^{nd} 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

1^{st} 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

2^{nd} 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)

1^{st} firm

Nominal value of 1 share= Rs10

Market value of 1 share= Rs13

Dividend%= 5%

Dividend = 5% of Rs10= Rs0.50

2^{nd} 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 1^{st} firm

Total dividend

For 2^{nd} 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 1^{st} part= Rs y

2^{nd} part= Rs(50,760-y)

For 1^{st} 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 2^{nd} 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

1^{st} part= Rs24,840

2^{nd} part= Rs50760 - Rs24,840= Rs25,920 Ans.

### Solution 12

1^{st} 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 =