IMO Practice Test — Shares and Dividends
6 Questions • 15 min • Olympiad level
15:00
Question 1 of 6
medium
A company has a share capital of ₹15,00,000 divided into shares of FV ₹50. If it declares a 10% dividend, what is the total dividend paid?
₹1,00,000
₹1,50,000
₹75,000
₹30,000
Explanation: Number of shares = 15,00,000/50 = 30,000. Dividend per share = 10% of 50 = ₹5. Total = 30,000×5 = ₹1,50,000
Question 2 of 6
medium
Ravi buys 400 shares of FV ₹20 at a premium of 40%. He pays 2% brokerage. Find his total investment.
₹9,600
₹9,792
₹11,200
₹11,424
Explanation: FV=20, Premium=40% of 20=₹8 → MV=28. MV total=400×28=11,200. Brokerage=2% of 11,200=224. Total=11,424
Question 3 of 6
medium
Which investment gives a better return: A: 12% dividend, FV=₹10, MV=₹40; B: 8% dividend, FV=₹100, MV=₹80?
A
B
Both equal
Cannot compare
Explanation: A: Div per share=₹1.20, ROI=1.20/40=3%. B: Div per share=₹8, ROI=8/80=10%. B is better
Question 4 of 6
medium
Meena buys 200 shares at ₹75 each. She sells them at ₹90 each. Brokerage is 1% on each transaction. Find her net profit percentage.
18%
18.8%
17.6%
20%
Explanation: Buying cost $=200 \times 75=15000$, plus $1\%$ brokerage $150=15150$. Selling proceeds $=200 \times 90=18000$, minus $1\%$ brokerage $180=17820$. Profit $=17820-15150=2670$. Profit percentage $=\frac{2670}{15150} \times 100 \approx 17.6\%$.
Question 5 of 6
medium
A person invests in shares of FV ₹100 at MV ₹120. The dividend rate is 15%. If his annual income from dividends is ₹3,000, how many shares did he buy?
150
200
250
300
Explanation: Div per share=15% of 100=₹15. Number of shares=3000/15=200
Question 6 of 6
medium
X invests in 5% shares at ₹120 (FV ₹100). Y invests in 8% shares at ₹160 (FV ₹100). Whose investment is more profitable?
X
Y
Equal
Cannot say
Explanation: X: Div per share=₹5, ROI=5/120=4.17%. Y: Div per share=₹8, ROI=8/160=5%. Y gives better return