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Mathematics

By investing ₹ 7,500 in a company paying 10 percent dividend, an annual income of ₹ 500 is received. What price is paid for each of ₹ 100 share ?

Shares & Dividends

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Answer

Let x be price paid for each share.

No. of shares = 7500x\dfrac{7500}{x}

Annual income = No. of shares × Rate of div. × N.V. of 1 share

500=7500x×10100×100x=75000500=150.\Rightarrow 500 = \dfrac{7500}{x} × \dfrac{10}{100} \times 100 \\[1em] \Rightarrow x = \dfrac{75000}{500} = 150.

Hence, price paid for ₹ 100 share = ₹ 150.

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