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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.
If she had bought these shares at 40% premium,
then please describe the way to find percentage returnÂ  she gets on her investment.
please mention the formula ifÂ  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 Ã— 100
= Rs. 1,80,000
Market value of 1800 shares = 1800 Ã— 140
= Rs. 2,52,000
(i) Dividend%= 15%
Dividend = 15% of Rs. 1,80,000
= (15/100) Ã— Rs.1,80,000=.27,000
(ii) return%=(income/investment)*100
=(27000/252000)*100=10.7%=11% approximately

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