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Mathematics

A man invests ₹24000 on ₹60 shares at a discount of 20%. If the dividend declared by the company is 10%, then his annual income is

  1. ₹3000
  2. ₹2880
  3. ₹1500
  4. ₹1440

Shares & Dividends

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Answer

Nominal Value per share = ₹60

As the shares are bought at a discount of 20%,
∴ Market Value per share = ₹60 - 20% of ₹60 = ₹60 - ₹12 = ₹48

Total Investment = ₹24000

∴No. of shares=InvestmentM.V.=2400048=500\therefore \text{No. of shares} = \dfrac{\text{Investment}}{\text{M.V.}} \\[0.5em] = \dfrac{24000}{48} = 500

Rate of Dividend = 10%

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

=500×10100×60=₹3000= 500 \times \dfrac{10}{100} \times 60 \\[0.5em] = ₹3000

∴ Option 1 is the correct option.

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