Assertion (A): A man invests ₹ 4,600 in ₹ 100 shares, paying 10% dividend and quoted at 15% premium. His annual dividend from these shares is ₹ 400.

Reason (R): Number of shares held by a person = $\dfrac{\text{Total market value}}{\text{Face value of 1 share}}$

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

Given,

Investment = ₹ 4,600

Rate of Div. = 10%

Face Value = ₹ 100

Premium Rate = 15%

Premium = 15% of 100 = $\dfrac{15}{100} \times 100$ = ₹ 15

Market Value = Face value + Premium = ₹ 100 + ₹ 15 = ₹ 115

By formula,

$\text{Number of shares} = \dfrac{ \text{ Investment }}{ \text{ Market value of each share}}\\[1em] = \dfrac{4600}{115} = 40. \\[1em] \text{Annual dividend} = \text{No. of shares} \times \text{Rate of div.} \times \text{ N.V. of 1 share}\\[1em] = 40 \times \dfrac{10}{100}\times 100 = ₹ 400.$

∴ Assertion (A) is true.

By formula,

$\text{Number of shares} = \dfrac{\text{Total Investment}}{\text{Market Value per share}}$

∴ Reason (R) is false.

Hence, Option 1 is the correct option.