How much should a man invest in ₹ 50 shares selling at ₹ 60 to obtain an income of ₹ 450, if the rate of dividend declared is 10% ? Also, find his yield percent, to the nearest whole number.
Shares & Dividends
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Question

How much should a man invest in ₹ 50 shares selling at ₹ 60 to obtain an income of ₹ 450, if the rate of dividend declared is 10% ? Also, find his yield percent, to the nearest whole number.

KnowledgeBoat · Accepted Answer

Given, Face Value = ₹ 50 Market Value = ₹ 60 Dividend Rate = 10% Required Annual Income = ₹ 450 Let no. of shares sold be x. By formula, Annual income = No. of shares × Rate of div. × N.V. of 1 share Investment = No. of shares × Market value of each share = 90 × 60 = ₹ 5,400. By formula, Yield % = = = 8.33% ≈ 8%. Hence, the man should invest ₹ 5,400 and the yield percent is 8%.

Mathematics

How much should a man invest in ₹ 50 shares selling at ₹ 60 to obtain an income of ₹ 450, if the rate of dividend declared is 10% ? Also, find his yield percent, to the nearest whole number.

Shares & Dividends

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Mathematics

How much should a man invest in ₹ 50 shares selling at ₹ 60 to obtain an income of ₹ 450, if the rate of dividend declared is 10% ? Also, find his yield percent, to the nearest whole number.

Shares & Dividends

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(i) number of shares he purchases;
(ii) his annual income.