an important question from the book -ML aggarwal( avichal publication)class 10th , chapter3, shares and dividends ……..

this question has three subparts.

we have given that A man invests rupees 8000 in a company paying 8 percent dividend,

it is also given that a share of face value of rupees 100 is selling at rupees 60 premium.

now we have to find What is his annual income.

and What percent does he get on his money?

this question seems important . please solve it in explanatory manner.

Q no. 19, exercise 3, ML Publication, share and dividends

Investment=8000

Rate of dividend=8%

Face value=100

Premium=60

Market value=face value+premium

=100+60

=160

Market value=investment/number of shares

=> 160=8000/number of shares

=> Number of shares=8000/160

=> Number of shares=50

1. Income=number of shares×rate of dividend/100×face value

Income=50×8/100×100

Income=50×8

Income=400

2. Percent return=income/investment×100

Percent return=400×100/8000

Percent return=5%