Mathematics
A lady holds 1800, ₹ 100 shares of a company that pays 15% dividend annually. Calculate her annual dividend. If she had bought these shares at 40% premium, what is the return she gets as percent on her investment?
Give your answer to nearest integer.
Shares & Dividends
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Answer
Market value = ₹ 100 + ₹ = ₹ 100 + ₹ 40 = ₹ 140.
Annual Dividend = No. of shares × Rate of div. × N.V. of 1 share
= 1800 ×
= ₹ 27,000.
Investment = No. of shares × M.V. = 1800 × ₹ 140 = ₹ 2,52,000.
Return % = 10.71% ≈ 11%.
Hence, annual dividend = ₹ 27,000 and return % = 11%.
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