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Mathematics

A company pays 18% dividend and its ₹ 100 share is available at a premium of 20%. The number of shares bought for ₹ 7,200 is :

  1. 1080

  2. 90

  3. 60

  4. 540

Shares & Dividends

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Answer

N.V. of share = ₹ 100

Premium = 20%

M.V. of share = N.V. + premium

= ₹ 100 + 20% of ₹ 100

= ₹ 100 + 20100×100\dfrac{20}{100} \times 100

= ₹ 100 + ₹ 20 = ₹ 120.

No. of shares bought = Sum investedM.V.=7200120\dfrac{\text{Sum invested}}{\text{M.V.}} = \dfrac{7200}{120} = 60.

Hence, Option 3 is the correct option.

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