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Mathematics

Assertion (A): Income of a shareholder is directly proportional to the number of shares he buys.

Reason (R): Income of a shareholder = Face value×No. of shares×Rate of dividend100\text{Face value} \times \dfrac{ \text{No. of shares} \times \text{Rate of dividend}}{100}

  1. A is true, R is false

  2. A is false, R is true

  3. Both A and R are true

  4. Both A and R are false

Shares & Dividends

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Answer

Income of a shareholder is directly proportional to the number of shares he buys. This is true because the more shares one holds, the greater the total dividend received. So, income increases with the number of shares.

So, Assertion (A) is true.

By formula,

Income=Face value×No. of shares×Rate of dividend100\text{Income} = \text{Face value} \times \text{No. of shares} \times \dfrac{ \text{Rate of dividend}}{100} \\[1em]

So, Reason (R) is also true.

Hence, Option 3 is the correct option.

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