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# A lady holds 1800, Rs. 100 shares of a company that pays 15% dividend annually. Calculate her annual dividend. If she had bought these shares at 40% premium, what percentage return does she get on her investment? Give your answer to the nearest integer.

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an important question from the book -ML aggarwal( avichal publication)class 10th , chapter3, shares and dividends. and asked in exam various times.

A lady holds 1800, Rs. 100 shares of a company that pays 15% dividend annually.
what would be the orderly procedure to find her annual dividend.
then please describe the way to find percentage return  she gets on her investment.
please mention the formula if  anywhere being applied.

Q no. 6, exercise 5, ML Publication, share and dividends

Share

1. Nominal value of 1 share = Rs. 100
Market value of 1 share = Rs. 100 + 40% of Rs. 100
= Rs. 100 + Rs. 40
= Rs. 140 No. of shares purchased = 1800
Nominal value of 1800 shares = 1800 × 100
= Rs. 1,80,000
Market value of 1800 shares = 1800 × 140
= Rs. 2,52,000
(i) Dividend%= 15%
Dividend = 15% of Rs. 1,80,000
= (15/100) × Rs.1,80,000=.27,000
(ii) return%=(income/investment)*100
=(27000/252000)*100=10.7%=11% approximately

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