Mathematics
A man buys ₹ 75 shares at a discount of ₹ 15 of a company paying 20% dividend. Find :
(i) the market value of 120 shares;
(ii) his annual income;
(iii) his profit percent.
Shares & Dividends
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Answer
(i) Market value of 1 share = ₹ 75 - ₹ 15 = ₹ 60.
∴ Market value of 120 shares = ₹ 60 × 120 = ₹ 7,200.
Hence, the market value of 120 shares = ₹ 7,200.
(ii) Annual income = No. of shares × Rate of div. × N.V. of 1 share
=
= ₹ 1,800.
Hence, total annual income = ₹ 1,800.
(iii) Profit % = = 25%.
Hence, profit % = 25%.
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