Mathematics

A man buys shares at the par value of ₹10 yielding 8% dividend at the end of a year. Find the number of shares bought if he receives a dividend of ₹300.

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As shares are bought at par,
Market value per share = Nominal value per share = ₹10

Rate of Dividend = 8%

Annual Dividend = ₹300

Let the number of shares purchased be x.

Annual Dividend = No. of shares x Rate of Dividend x Nominal Value per share

According to the given,

$300 = x \times \dfrac{8}{100} \times 10 \\[0.5em] x = \dfrac{300 \times 10}{8} \\[0.5em] x = 375$

∴ Number of shares bought = 375

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