Q) Ms. Kaur invested ₹ 8,000 in buying ₹100 shares of a company paying 6% dividend at ₹ 80. After a year, she sold these shares at ₹75 each and invested the proceeds including the dividend received during the first year in buying ₹ 20 shares, paying 15% dividend at ₹ 27 each. Find the:

(a) dividend received by her during the first year.

(b) number of shares purchased by her using the total proceeds

ICSE Soecimen Question Paper (SQP) 2026

Ans: a) Dividend earned in 1st year:

Given that Investment = Rs. 8,000 and Purchase price of each share = Rs. 80

Step1: We know that, Investment = No. of shares x Purchase price of each share

∴ 8,000 = No. of shares x Rs. 80

∴ No. of shares = = 100 shares

Step 2: The Dividend Income earned = No. of shares × Nominal value of a share × Rate of Dividend

Given that, Nominal value of a share = Rs. 100 and Rate of Dividend = 6%

∴ Dividend Income earned = 100 x 100 x 6%  =  Rs. 600

Therefore, dividend received by her during the first year is Rs. 600.

(b) Number of shares purchased using the total proceeds:

Step 3: Total Proceeds = Sale Amount + Dividend earned

= Number of shares x Sale price of each share + Dividend earned

= 100 x Rs. 75 + Rs. 600     (Given that each share was sold @ Rs. 75)

= 7500 + 600 = Rs. 8,100

This total proceed will nw be used as investment for next purchase.

Step 4: New purchase price = Rs. 27 per share

Since, Investment = No. of shares x Purchase price of each share

∴ 8,100 = No. of shares x 27

∴ No. of shares = = 300

Therefore, total 300 shares are purchased using total proceeds.

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