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Mathematics

A man invests ₹ 11,000 in ₹ 100 shares paying 10% dividend. If his annual income from these shares is ₹ 1,000, then the market value of each share is :

  1. ₹ 100

  2. ₹ 120

  3. ₹ 110

  4. ₹ 220

Shares & Dividends

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Answer

By formula,

Total dividend earned = No. of shares × rate of dividend × N.V. of share

1000 = Sum investedM.V. of share×10100×100\dfrac{\text{Sum invested}}{\text{M.V. of share}} \times \dfrac{10}{100} \times 100

1000 = 11000M.V. of share×10\dfrac{11000}{\text{M.V. of share}} \times 10

M.V. of share = 1100001000\dfrac{110000}{1000} = ₹ 110.

Hence, Option 3 is the correct option.

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