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A man invests rupees 8000 in a company paying 8 percent dividend, when a share of face value of rupees 100 is selling at rupees 60 premium. 1) What is his annual income? 2) What percent does he get on his money?

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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

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  1. 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%

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