Mathematics
A man invests ₹ 8,800 on buying shares of face value ₹ 100 each at a premium of 10%. If he earns ₹ 1,200 at the end of the year as dividend, find :
(i) the number of shares he has in the company,
(ii) the dividend percentage per share.
Shares & Dividends
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Answer
Given,
Investment = ₹ 8,800
Face Value = ₹ 100
Premium rate = 10%
Premium = = ₹ 10
Market Value = Face Value + Premium = ₹ 100 + ₹ 10 = ₹ 110
Dividend = ₹ 1,200
(i) Number of shares = = 80
Hence, the number of shares the man has in the company equals to 80.
(ii) By formula
Dividend per share = = ₹ 15.
Dividend percentage per share = = 15%.
Hence, the dividend percentage per share is 15%.
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