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# A man invests Rs 8800 on buying shares of face value of rupees hundred each at a premium of 10%. If he earns Rs 1200 at the end of year as dividend, find: (i) The number of shares he has in this company (ii) The dividend percentage per share.

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this is an important question  because it has been asked in 2001 and has a high chances of coming in the future exams.
the book -ML aggarwal( avichal publication)class 10th , chapter3, shares and dividends

we have the information that A man invests Rs 8800 on buying shares of face value of rupees hundred each at a premium of 10%.
he earns Rs 1200 at the end of year as dividend,
so please  solve question for two sub-questions  (i) The number of shares he has in this company (ii) The dividend percentage per share.

.Q no. 12 , exercise 3, ML Publication, share and dividends

Share

1. Face value of 1 share =Rs. 100
Market value of 1 share =Rs. {100+(10/100)*100}
=Rs. (100+10)
=Rs. 110
Investment =Rs. 8,800
Annual dividend =Rs. 1200
(i) Total number of share=8800/110
=80 shares
(ii) Dividend percentage per share =1200*100/(80*100)
=15%.

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