Mathematics
A man buys 250, ten-rupee shares each at ₹12.50. If the rate of dividend is 7%, find the :
(a) dividend he receives annually.
(b) percentage return on his investment.
Shares & Dividends
ICSE Sp 2025
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Answer
(a) Nominal Value of 1 share = ₹10
Market Value of 1 share = ₹12.50
Number of shares purchased = 250
Nominal Value of 250 shares = 250 x 10 = ₹2500
Rate of dividend = 7%
∴ Dividend received = 7% of 2500
=
= ₹175.
Hence, annual dividend = ₹175.
(b) Amount Invested = No. of shares x Market Value
= 250 x 12.50
= ₹3125
Hence, return percentage = 5.6%.
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