Mathematics
Salman buys 50 shares of face value ₹ 100 available at ₹ 132.
(i) What is his investment?
(ii) If the dividend is 7.5%, what will be his annual income ?
(iii) If he wants to increase his annual income by ₹ 150, how many extra shares should he buy?
Shares & Dividends
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Answer
(i) Investment = ₹ 132 × 50 = ₹ 6,600
Hence, Salman's investment = ₹ 6,600.
(ii) Annual income = No. of shares × Rate of div. × N.V. of 1 share
= 50 ×
= ₹ 375.
Hence, annual income = ₹ 375.
(iii) Let no. of shares needed to get income of ₹ 525 (₹ 375 + ₹ 150) be x
Annual income = No. of shares × Rate of div. × N.V. of 1 share
525 = x
x = = 70.
Extra shares = 70 - 50 = 20.
Hence, Salman should buy 20 extra shares.
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