Problem Solving (PS) | Re: In 2002, Vikrant had 3000 shares of company X, which gave a dividend

­Here is the stepwisecalculation:

1. Total Selling Amount for Shares of CompanyX:
   
   
   
   • Total = 3000 shares * $106 per share =$318,000
2. Amount Paid toBroker:
   
   
   
   • Broker Fee = $318,000 * 2% =$6,360
3. Remaining Amount After Paying theBroker:
   
   
   
   • Remaining = $318,000 - $6,360 =$311,640
4. Number of Shares of Company Y That He CanPurchase:
   
   
   
   • Number of shares = $311,640 // $105 per share ≈ 2968shares
5. Dividend Earnings from Company X in2002:
   
   
   
   • Dividend Earnings X = 3000 shares * $100 face value * 6% =$18,000
6. Dividend Earnings from Company Y in2003:
   
   
   
   • Dividend Earnings Y = 2968 shares * $100 face value * 7% ≈$20,776
7. Difference inEarnings:
   
   
   
   • Difference = $20,776 (2003 earnings) - $18,000 (2002 earnings) ≈$2,776

Therefore, the difference in Vikrant's earnings between 2002 and 2003 is approximately $2,776, which corresponds to option (D) $2776.
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Statistics : Posted by Raman109 • on 01 Aug 2022, 05:15 • Replies 2 • Views 654

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