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Mathematics

By investing ₹ 11,440 in a company paying 10% dividend, an annual income of ₹ 520 is received. What is the market value of each ₹ 50 share?

Shares & Dividends

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Answer

Given,

Investment = ₹ 11,440

Annual Income = ₹ 520

Face Value = ₹ 50

Dividend Rate = 10%

Let market value of each share be ₹ x.

No. of share=InvestmentMarket value of each share=11440x\text{No. of share} = \dfrac{\text{Investment}}{\text{Market value of each share}} = \dfrac{11440}{x}

By formula,

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

∴520=11440x×10100×50⇒x=11440×5520⇒x=₹110\therefore 520 = \dfrac{11440}{x} \times \dfrac{10}{100} \times 50\\[1em] \Rightarrow x = \dfrac{11440 \times 5}{520} \\[1em] \Rightarrow x = ₹ 110

Hence, the market value of each share is ₹ 110.

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