Govind buys 50 shares of face value ₹100 available at ₹132.

(i) What is his investment?

(ii) If the dividend is 7.5% p.a., what will be his annual income?

(iii) If he wants to increase his annual income by ₹150, how many extra shares should he buy?

Number of shares = 50

Face value per share = ₹100

Market value per share = ₹132

(i)
Total Investment = No. of shares x Market value per share

$= 50 \times 132 \ = 6600$

∴ Govind's investment = ₹6600

(ii)
Annual Dividend = No. of shares x Rate of Dividend x Nominal Value per share

$= 50 \times \dfrac{7.5}{100} \times 100 \\[0.5em] = 375$

∴ Govind's Annual Income = ₹375

(iii)
Increase in Annual Income = ₹150

New Annual Income = ₹375 + ₹150 = ₹525

Let the new number of shares by x

Annual Dividend = No. of shares x Rate of Dividend x Nominal Value per share

According to the given,

$525 = x \times \dfrac{7.5}{100} \times 100 \\[0.5em] 525 = 7.5x \\[0.5em] x = \dfrac{5250}{75} \\[0.5em] x = 70$

∴ New number of shares = 70

Extra shares Govind should buy
= 70 - 50
= 20