Mathematics
A man invests ₹ 3,360 in buying shares of nominal value ₹ 24 and selling at 12% premium. The dividend on the shares is 15% per annum. Calculate:
(i) the number of shares he buys;
(ii) the dividend he receives annually.
Shares & Dividends
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Answer
(i) F.V. = ₹ 24
Premium = 12% = = ₹ 2.88.
Market value = ₹ 24 + ₹ 2.88 = ₹ 26.88
Investment = ₹ 3,360
No. of shares = = 125.
Hence, the no. of shares = 125.
(ii) By formula,
Annual income = No. of shares × Rate of div. × N.V. of 1 share
=
= ₹ 450.
Hence, dividend received annually = ₹ 450.
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The number of ₹ 25 shares, paying 24% dividend, with total dividend ₹ 1,350 is :
125
27
225
200