 Hello and welcome to the session. In this session we will discuss the following question and the question says, A man sells 60-15 dollars shares of a company paying 12% dividend at 21 dollars each and invests the proceeds at 6 dollars shares of another company at 9 dollars each. Find the change in income if the second company pays a dividend of 8%. Let's start the solution now. First, we will calculate the income in the first case. So, in the first case, we are given that a man sells 60-15 dollars shares of a company paying 12% dividend. So, we can say that number of shares is equal to 60. Nominal value of one share is 15 dollars and rate of dividend is 12%. Therefore, income on one share is equal to rate of dividend is 12%. So, we have 12% of the nominal value which is 15 dollars. Now, this is equal to 12 upon 100 into 15 dollars. Now, 5 three times is 15 and 20 times is 100. Also, 4 three times is 12 and 5 times is 20. So, this is equal to 9 upon 5 dollars which is equal to 1.80 dollars. So, we have income on one share is 1.80 dollars. This implies total income is equal to total number of shares is 60. So, 60 into income from one share which is 1.80 dollars and this is equal to 108 dollars. Now, it is given that he sells the shares for 21 dollars each. So, we have he sells all the shares for 21 dollars each. Therefore, money obtained by selling 60 shares is equal to 60 into 21 dollars and this is equal to 1260 dollars. Now, we will see the income obtained in the second case. So, in the second case, we are given that he invests the proceeds at 6 dollar shares of another company at 9 dollars each. So, the money obtained by selling the 60 shares is invested in another company. So, some invested is equal to 1260 dollars. Nominal value of one share is equal to 6 dollars. Market value of one share is equal to 9 dollars. Also, we are given that the second company pays a dividend of 8 percent. So, rate of dividend is equal to 8 percent. Therefore, number of shares is equal to the sum invested which is 1260 upon market value of one share which is 9 and this is equal to 140. Now, the dividend on one share is equal to 8 percent of the nominal value that is 6 dollars. This is equal to 8 upon 100 into 6 dollars. Now, for 2 times is 8 and 25 times is 100. So, this is equal to 12 upon 25 dollars which is equal to 0.48 dollars. So, we have dividend on one share is 0.48 dollars. This implies total income is equal to total number of shares which is 140 into dividend on one share which is 0.48 dollars. And this is equal to 67.20 dollars. So, we have income in the second case is 67.20 dollars and income in the first case is 108 dollars. So, therefore, change in income is equal to 108 dollars minus 67.20 dollars and this is equal to 30.80 dollars. Hence, income is 40.80 dollars less and this is the final answer. With this, we end our session. Hope you enjoyed the session.