Mathematics
Mr. Parekh invested ₹52,000 on ₹ 100 shares at a discount of ₹ 20 paying 8% dividend. At the end of one year he sells the shares at a premium of ₹ 20. Find :
(i) the annual dividend.
(ii) the profit earned including his dividend.
Shares & Dividends
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Answer
(i) M.V. = ₹ 100 - ₹ 20 = ₹ 80.
Investment = ₹52,000
No. of shares =
Annual dividend = No. of shares × Rate of div. × N.V. of 1 share
= 650 ×
= ₹ 5,200.
Hence, annual dividend = ₹ 5,200.
(ii) S.P. = ₹ 100 + ₹ 20 = ₹ 120.
S.P. of 650 shares = 650 × ₹ 120 = ₹ 78,000
Profit = S.P. - C.P. = ₹ 78,000 - ₹ 52,000 = ₹ 26,000.
Profit + dividend = ₹ 26,000 + ₹ 5,200 = ₹ 31,200.
Hence, profit earned including dividend = ₹ 31,200.
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