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Mathematics

By purchasing ₹ 25 gas shares for ₹ 40 each, a man gets 4 percent profit on his investment. What rate percent is the company paying ? What is his dividend if he buys 60 shares?

Shares & Dividends

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Answer

Profit = 4% = 4100×40=1.6\dfrac{4}{100} \times 40 = 1.6

Let company be paying x% dividend.

As,

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

⇒ 1.6 = 1 × x100\dfrac{x}{100} × 25

⇒ x = 16025\dfrac{160}{25} = 6.4%.

For 60 shares dividend = 60 ×6.4100×25\times \dfrac{6.4}{100} \times 25 = ₹ 96.

Hence, rate paid by company = 6.4% and dividend = ₹ 96.

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