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.

If she had bought these shares at 40% premium,

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

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