Mathematics
A man buys 400, twenty-rupee shares at a premium of ₹ 4 each and receives a dividend of 12%. Find :
(i) the amount invested by him
(ii) his total income from the shares
(iii) percentage return on his money.
Shares & Dividends
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Answer
(i) Market value = ₹ 20 + ₹ 4 = ₹ 24.
Amount invested = 400 × ₹ 24 = ₹ 9,600
Hence, amount invested = ₹ 9,600.
(ii) Annual income = No. of shares × Rate of div. × N.V. of 1 share
= 400 ×
= ₹ 960.
Hence, annual income = ₹ 960.
(iii) Percentage return = = 10%.
Hence, percentage return = 10%.
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