Mathematics
A man invests ₹ 11,200 in a company paying 6 percent per annum when its ₹ 100 shares can be bought for ₹ 140. Find :
(i) his annual dividend
(ii) his percentage return on his investment.
Shares & Dividends
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Answer
(i) Market value = ₹ 140
Investment = ₹ 11,200
No. of shares =
Annual dividend = No. of shares × Rate of div. × N.V. of 1 share
= 80 ×
= ₹ 480.
Hence, annual dividend = ₹ 480.
(ii) Return% = = 4.29%
Hence, return % = 4.29%.
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