Mathematics
How much should a man invest in ₹ 50 shares selling at ₹ 60 to obtain an income of ₹ 450, if the rate of dividend declared is 10%. Also find his yield percent, to the nearest whole number.
Shares & Dividends
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Answer
Let investment = ₹ x.
M.V. = ₹ 60
No. of shares =
Annual income = No. of shares × Rate of div. × N.V. of 1 share
450 =
x = 450 × 12 = 5,400
Yield % = = 8.33% ≈ 8%.
Hence, investment = ₹ 5,400 and yield % = 8%.
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