Mathematics
A man invests ₹ 8,800 in buying shares of a company of face value of rupees hundred each at a premium of 10 %. If he earns ₹ 1,200 at the end of the year as dividend, find :
(i) the number of shares he has in the company.
(ii) the dividend percent per share.
Shares & Dividends
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Answer
(i) F.V. = ₹ 100
Premium = 10 % = = ₹ 10.
Market value = ₹ 100 + ₹ 10 = ₹ 110.
Investment = ₹ 8,800
No. of shares = = 80.
Hence, the no. of shares = 80.
(ii) Annual income = No. of shares × Rate of div. × N.V. of 1 share
Let dividend percent = x%,
1200 =
1200 = 80x
x = %.
Hence, dividend percent per share = 15%.
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