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Mathematics

Find the percentage interest on capital invested in 18% shares when a ₹10 share costs ₹12.

Shares & Dividends

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Answer

Nominal Value per share = ₹10

Market Value per share = ₹12

Rate of Dividend = 18%

Dividend on 1 share

=18%of ₹10=18100×10=₹95= 18\% \text{of ₹10} = \dfrac{18}{100} \times 10 \\[0.5em] = ₹\dfrac{9}{5}

%Return=(Inc. per shareM.V. per share×100)%=(9512×100)%=(95×112×100)%=15%\% \text{Return} = \Big(\dfrac{\text{Inc. per share}}{\text{M.V. per share}} \times 100\Big)\% \\[0.5em] = \Big(\dfrac{\frac{9}{5}}{12} \times 100\Big) \% \\[0.5em] = \Big(\dfrac{9}{5} \times \dfrac{1}{12} \times 100 \Big) \% \\[0.5em] = \bold{15\%}

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