Mathematics
A company declares a dividend of 11.2% to all its share-holders. If its ₹ 60 share is available in the market at a premium of 25%, how much should Rakesh invest, in buying the shares of this company, in order to have an annual income of ₹ 1,680?
Shares & Dividends
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Answer
Let man invest ₹ x
Market value = ₹ 60 + = ₹ 60 + ₹ 15 = ₹ 75
∴ No. of shares =
We know that,
Annual income = No. of shares × Rate of div. × N.V. of 1 share
Hence, investment = ₹ 18,750.
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