**Chapter 4 Financial Planning Set 4.3**

## Chapter 4 Financial Planning Set 4.3

**Question 1. Complete the following table by writing suitable numbers and words.**

Solution:

Solution:

i. Here, share is at par.

∴ MV = FV

∴ MV = ₹ 100

ii. Here, Premium = ₹ 500, MV = ₹ 575

∴ FV + Premium = MV

∴ FV + 500 = 575

∴ FV = 575 – 500

∴ FV = ₹ 75

iii. Here, FV = ₹ 10, MV = ₹ 5

∴ FV > MV

Share is at discount.

FV – Discount = MV

∴ 10 – Discount = 5

∴ 10 – 5 = Discount

₹ Discount = ₹ 5

**Question 2. Mr. Amol purchased 50 shares of Face value ₹ 100 when the Market value of the share was ₹ 80. Company had given 20% dividend. Find the rate of return on investment.Solution:**

Here, MV = ₹ 80, FV = ₹ 100,

Number of shares = 50, Rate of dividend = 20%

∴ Sum invested = Number of shares × MV

= 50 × 80

= ₹ 4000

Dividend per share = 20% of FV

= × 100 = ₹ 20

∴ Total dividend of 50 shares = 50 × 20

= ₹ 1000

∴ Rate of return on investment is 25%.

**Question 3.**

Joseph purchased following shares, Find his total investment.

Company A : 200 shares, FV = ₹ 2, Premium = ₹ 18.

Company B : 45 shares, MV = ₹ 500

Company C : 1 share, MV = ₹ 10,540

Solution:

For company A:

FV = ₹ 2, premium = ₹ 18,

Number of shares = 200

∴ MV = FV+ Premium

= 2 + 18

= ₹ 20

Sum invested = Number of shares × MV

= 200 × 20

= ₹ 14000

For company B:

MV = ₹ 500, Number of shares = 45

Sum invested = Number of shares × MV

= 45 × 500 = ₹ 22,500

For company C:

MV = ₹ 10,540, Number of shares = 1

∴ Sum invested = Number of shares × MV

= 1 × 10540

= ₹ 10,540

∴ Total investment of Joseph

= Investment for company A + Investment for company B + Investment for company C

= 4000 + 22,500 + 10,540

= ₹ 37040

∴ Total investment done by Joseph is ₹ 37,040.

**Question 4.Smt. Deshpande purchased shares of FV ₹ 5 at a premium of ₹ 20. How many shares will she get for ₹ 20,000?Solution:**

Here, FV = ₹ 5, Premium = ₹ 20,

Sum invested = ₹ 20,000

∴ MV = FV + Premium

= 5 + 20

∴ MV = ₹ 25

Now, sum invested = Number of shares × MV

∴ Smt. Deshpande got 800 shares for ₹ 20,000.

**Question 5.Shri Shantilal has purchased 150 shares of FV ₹ 100, for MV of ₹ 120. Company has paid dividend at 7%. Find the rate of return on his investment.Solution:**

Here, FV = ₹ 100, MV = ₹ 120

Dividend = 7%, Number of shares = 150

∴ Sum invested = Number of shares × MV

= 150 × 120 = ₹ 18000

Dividend per share = 7% of FV

= × 100 = ₹ 7

∴ Total dividend of 150 shares

= 150 × 7 = ₹ 1050

∴ Rate of return on investment is 5.83%.

**Question 6. If the face value of both the shares is same, then which investment out of the following is more profitable?Company A : dividend 16%, MV = ₹ 80,Company B : dividend 20%, MV = ₹ 120.Solution:**

Let the face value of share be ₹ x.

For company A:

MV = ₹ 80, Dividend = 16%

Dividend = 16% of FV

∴ Rate of return of company A is more.

∴ Investment in company A is profitable.

**Question 1.Smita has invested ₹ 12,000 and purchased shares of FV ₹ 10 at a premium of ₹ 2. Find the number of shares she purchased. Complete the given activity to get the answer. (Textbook pg. no. 101.)Solution:**