Let the number of shares sold by Babu be x.
The face value of a share is Rs 100.
He sold a 10% discount; the selling price of one share Rs 90.
The selling price of x shares = Rs 90x
He bought a share of face value Rs 50 and the number of shares 33.
∴ Number of shares bought for the amount Rs 90x i.e., \(\frac{90x}{33}\)
∴ Face value of 50 shares = Cost of one share x Number of share
= 50 x \(\frac{90x}{33}\)
The dividend is 15%.
∴ Income = \(\frac{15}{100}\) x Face value of 50 shares
= \(\frac{15}{100}\times50\times\frac{90x}{33}\)
= \(\frac{225x}{11}\)
Suppose he sold his shares at 10% premium instead of 10% discount, the market value of one share is Rs 110.
Selling price of x shares = 110 x (x) = 110x
Number of shares bought for Rs 33 = \(\frac{110x}{33}\)
Face value of 50 shares = \(\frac{110x}{33}\) x 50
Income = \(\frac{15}{100}\times\frac{110x}{33}\) x 50 = 25x
Change Income = Rs 450
x = \(\frac{450}{50}\) x 11 = 9 x 11 = 99 share