Mathematics
Ajay owns 560 shares of a company. The face value of each share is ₹ 25. The company declares a dividend of 9%. Calculate :
(i) The dividend that Ajay will get;
(ii) The rate of interest on his investment, if Ajay had paid ₹ 30 for each share.
Shares & Dividends
4 Likes
Answer
Given,
Number of shares = 560
Face Value = ₹ 25
Dividend Rate = 9%
(i) By formula,
Annual dividend = No. of shares × Rate of div. × N.V. of 1 share
=
= ₹ 1,260.
Hence, the dividend that Ajay receives equals to ₹ 1,260.
(ii) Given,
Market value = ₹ 30
By formula,
Investment = Number of shares × Market value
= 560 × 30 = ₹ 16,800.
By formula,
Percentage return =
=
= 7.5%.
Hence, the rate of interest (return) is 7.5%.
Answered By
1 Like
Related Questions
Mr. Ram Gopal invested ₹ 8,000 in 7%, ₹ 100 shares at ₹ 80. After a year, he sold these shares at ₹ 75 each and invested the proceeds (including his dividend) in 18%, ₹ 25 shares at ₹ 41. Find :
(i) his dividend for the first year;
(ii) his annual income in the second year;
(iii) the percentage increase in his return on his original investment.
Amit Kumar invests ₹ 36,000 in buying ₹ 100 shares at ₹ 20 premium. The dividend is 15% per annum. Find :
(i) the number of shares he buys;
(ii) his yearly dividend;
(iii) the percentage return on his investment.
Give your answer correct to the nearest whole number.
Mohan Lal invested ₹ 29,040 in 15%, ₹ 100 shares of a company quoted at a premium of 20%. Calculate :
(i) the number of shares bought by Mohan Lal;
(ii) his annual income from shares;
(iii) the percentage return on his investment.
A man invests ₹ 8,800 on buying shares of face value ₹ 100 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 percentage per share.