Q.1 (a) As an example, consider an investor who bought 500 shares of stock in company Atlas Honda at 5 per share. Suppose that the shares rally to RS 7 each. If the investor sells the shares at market value, then what will be capital gain of the investor?

(b) The investor who bought ABC company 500 shares of stock at 5 per share for RS 2,500 benefited when the stock price rose. Regardless of the movement in the price of the stock, the investor benefits if company ABC announces a special dividend of RS 0.10 per share. In this case, what will be the dividend of the investor?