18: Shares and Debentures

Example number 18.1, Page number 18.6

In [1]:
#importing modules
import math
from __future__ import division

#Variable declaration
a1=5000;     #amount(Rs)
mv1=95;    #market value
a2=3000;     #amount(Rs)
a3=2500;     #amount(Rs)
mv2=100+10;  #market value
a4=1000;     #amount(Rs)
d1=8;    #discount(%)
a5=2200;     #amount(Rs)
b1=1/11;     #brokerage(%)
a6=2000;     #amount(Rs)
mv3=100+5;   #market value
b2=1/2;     #brokerage(%)
d2=6;       #discount
a7=1000;    #amount(Rs)
b3=1/2;     #brokerage(%)

#Calculation
cp1=a1*mv1/100;     #cost of purchase in 1st case(Rs)
cp2=a2;      #cost of purchase in 2nd case(Rs)
cp3=a3*mv2/100;   #cost of purchase in 3rd case(Rs) 
cp4=a4*(100-d1)/100;    #cost of purchase in 4th case(Rs) 
cp5=a5*(100+b1)/100;       #cost of purchase in 5th case(Rs) 
cp6=a6*(mv3+b2)/100;   #cost of purchase in 6th case(Rs) 
mv4=100-d2;     #market value
cp7=a7*(mv4+b3)/100;   #cost of purchase in 7th case(Rs)  

#Result
print "cost of purchase in 1st case is",cp1,"Rs"
print "cost of purchase in 2nd case is",cp2,"Rs"
print "cost of purchase in 3rd case is",cp3,"Rs"
print "cost of purchase in 4th case is",cp4,"Rs"
print "cost of purchase in 5th case is",cp5,"Rs"
print "cost of purchase in 6th case is",cp6,"Rs"
print "cost of purchase in 7th case is",cp7,"Rs"

cost of purchase in 1st case is 4750.0 Rs
cost of purchase in 2nd case is 3000 Rs
cost of purchase in 3rd case is 2750.0 Rs
cost of purchase in 4th case is 920.0 Rs
cost of purchase in 5th case is 2202.0 Rs
cost of purchase in 6th case is 2110.0 Rs
cost of purchase in 7th case is 945.0 Rs

Example number 18.2, Page number 18.7

In [2]:
#importing modules
import math
from __future__ import division

#Variable declaration
a=2000;     #amount(Rs)
mv=100+6;   #market value
b=1/2;     #brokerage(%)

#Calculation
sr=a*(mv-b)/100;    #sale realisation(Rs) 

#Result
print "sale realisation is",sr,"Rs"

sale realisation is 2110.0 Rs

Example number 18.3, Page number 18.7

In [3]:
#importing modules
import math
from __future__ import division

#Variable declaration
mv=100+(9/4);   #market value
b=1/2;     #brokerage(%)
sr=1221;     #sale realisation(Rs) 
 
#Calculation
a=sr*100/(mv-b);    #amount of stock(Rs) 

#Result
print "amount of stock is",a,"Rs"

amount of stock is 1200.0 Rs

Example number 18.4, Page number 18.7

In [4]:
#importing modules
import math
from __future__ import division

#Variable declaration
b=1/2;     #brokerage(%)
d=8;    #discount(%)
pc=1850;   #purchase cost(Rs)

#Calculation
a=pc*100/(100-d+b);    #amount of stock(Rs) 

#Result
print "amount of stock is",a,"Rs"

amount of stock is 2000.0 Rs

Example number 18.5, Page number 18.7

In [5]:
#importing modules
import math
from __future__ import division

#Variable declaration
a=2800;     #amount of stock(Rs) 
r=4/100;    #rate of stock(%)

#Calculation
I=a*r    #annual income(Rs)

#Result
print "annual income is",I,"Rs"

annual income is 112.0 Rs

Example number 18.6, Page number 18.8

In [6]:
#importing modules
import math
from __future__ import division

#Variable declaration
i=2800;     #investment(Rs)
r=4;    #rate of stock(%)
mvb=112;    

#Calculation
I=i*r/mvb;    #annual income(Rs)

#Result
print "annual income is",I,"Rs"

annual income is 100.0 Rs

Example number 18.7, Page number 18.8

In [7]:
#importing modules
import math
from __future__ import division

#Variable declaration
i=100;     #investment(Rs)
r=7;    #rate of stock(%)
b=1/(4*100);     #brokerage(%)
mv=1-(5/100);    #market value

#Calculation
R=i*r/(mv+b);   #rate percent obtained(%)

#Result
print "rate percent obtained is",round(R/100,2),"%"

rate percent obtained is 7.35 %

Example number 18.8, Page number 18.8

In [8]:
#importing modules
import math
from __future__ import division

#Variable declaration
i=1220;     #investment(Rs)
r=6;    #rate of stock(%)
b=1/4;     #brokerage(%)
I=244;    #annual income(Rs)

#Calculation
mv=(i*r/I)-b;     #market value

#Result
print "market value is",mv

market value is 29.75

Example number 18.9, Page number 18.8

In [9]:
#importing modules
import math
from __future__ import division

#Variable declaration
r=20/3;    #rate of stock(%)
mvb=110;
b=1/4;     #brokerage(%)
i=300;    #annual income(Rs)

#Calculation
I=i*mvb/r;   #investment(Rs)

#Result
print "investment is",I,"Rs"
print "answer given in the book is wrong"

investment is 4950.0 Rs
answer given in the book is wrong

Example number 18.10, Page number 18.8

In [10]:
#importing modules
import math
from __future__ import division

#Variable declaration
fv=20;    #face value(Rs)
mv=74;    #market value(Rs)
n=250;    #number of shares

#Calculation
a=mv*n;    #amount paid by buyer(Rs)
cp=fv*n;   #purchase cose(Rs)
g=a-cp;    #gain by share holder(Rs)

#Result
print "gain by share holder is",g,"Rs"

gain by share holder is 13500 Rs

Example number 18.11, Page number 18.9

In [11]:
#importing modules
import math
from __future__ import division

#Variable declaration
pc=4220;    #purchase cost(Rs)
mv=105;     #market value
b=1/2;     #brokerage(%)

#Calculation
sr=pc*(mv-b)/(mv+b);    #sale realisation(Rs) 

#Result
print "sale realisation is",sr,"Rs"

sale realisation is 4180.0 Rs

Example number 18.12, Page number 18.9

In [12]:
#importing modules
import math
from __future__ import division

#Variable declaration
fv=10;    #face value(Rs)
d=3/8;    #discount
b=1/8;     #brokerage(%)
n=80;    #number of shares

#Calculation
c1=fv-d+b;    #cost of 1 share(Rs)
C=n*c1;      #cost of 80 shares(Rs)

#Result
print "cost of 80 shares is",C,"Rs"

cost of 80 shares is 780.0 Rs

Example number 18.13, Page number 18.9

In [16]:
#importing modules
import math
from __future__ import division
from fractions import gcd

#Variable declaration
mvb=120;
a=4500;     #amount(Rs)
r=5;    #rate of stock(%)
i=75;   #income(Rs)
x1=99;
x2=132; 
r1=3;    #rate(%) 
r2=8;    #rate(%)

#Calculation
sr=mvb*a/100;     #sale realisation(Rs) 
Is=a*r/100;     #income before selling(Rs)
Ias=Is+i;     #income after sale(Rs)


l=x1*x2/gcd(x1,x2);     #lcm of x1 and x2
X=l*Ias;
f1=l/x1;
f2=l/x2;
c1=r2*f1;    #c1=r2*f1
c2=r1*f1;
c=l*r2*sr/x2;
x=(c-X)/(c1-c2);    #amount invested in 3% stock(Rs)
y=sr-x;     #amount invested in 8% stock(Rs)

#Result
print "amount invested in 3% stock is",x,"Rs"
print "amount invested in 8% stock is",y,"Rs"
print "answer given in the book is wrong"

amount invested in 3% stock is 540.0 Rs
amount invested in 8% stock is 4860.0 Rs
answer given in the book is wrong

Example number 18.14, Page number 18.10

In [17]:
#importing modules
import math
from __future__ import division
from fractions import gcd

#Variable declaration
i=2592;    #investment(Rs)
mvb=108;
fv=100;   #face value(Rs)
d=25/2;   #dividend(%)

#Calculation
I=i*d*fv/(mvb*100);    #income derived(Rs)

#Result
print "income derived is",I,"Rs"

income derived is 300.0 Rs

Example number 18.15, Page number 18.10

In [18]:
#importing modules
import math
from __future__ import division
from fractions import gcd

#Variable declaration
r=17/4;    #rate(%)
fv=20;   #face value(Rs)
n=88;    #number of shares
p=5;    #premium
b=1/4;   #brokerage(%)

#Calculation
d=r*fv*n/100;     #dividend(Rs)
pc=fv+p+b;    #purchase cost(Rs)
R=r*fv/pc;    #rate of interest on investment(%)

#Result
print "rate of interest on investment is",round(R,2),"%"

rate of interest on investment is 3.37 %

Example number 18.16, Page number 18.10

In [19]:
#importing modules
import math
from __future__ import division
from fractions import gcd

#Variable declaration
i=4444;    #investment(Rs)
I=600;     #annual income(Rs)
fv=100;   #face value(Rs)
d=15;   #dividend(%)
b=1/100;   #brokerage(%)

#Calculation
M=i*d*fv/(I*100*(1+b));    #market value of each share(Rs)

#Result
print "market value of each share is",M,"Rs"

market value of each share is 110.0 Rs

Example number 18.17, Page number 18.11

In [20]:
#importing modules
import math
from __future__ import division
from fractions import gcd

#Variable declaration
I=1500;     #annual income(Rs)
fv=100;   #face value(Rs)
d=15;   #dividend(%)
b=1/100;   #brokerage(%)
M=104;   #market value(Rs)

#Calculation
i=I*100*M*(1+b)/(d*fv);    #investment(Rs)

#Result
print "investment is",i,"Rs"

investment is 10504.0 Rs

Example number 18.18, Page number 18.11

In [21]:
#importing modules
import math
from __future__ import division
from fractions import gcd

#Variable declaration
d1=15;     #debenture(%)
d2=14;     #debenture(%)
p=8;      #premium(%)
d=4;      #discount(%)

#Calculation
M1=100-d;    #market value(Rs)
M2=100+p;    #market value(Rs)
x=d1*M1;     #investment(Rs)
y=d2*M2;     #investment(Rs)
if(x<y):
    print "investment is better"
else:
    print "investment is not better"
    
#Result
print "investment in 1st case is",x,"Rs"
print "investment in 2nd case is",y,"Rs"
print "answer given in the book for 2nd case is wrong"

investment is better
investment in 1st case is 1440 Rs
investment in 2nd case is 1512 Rs
answer given in the book for 2nd case is wrong