sir this is the question from the book -ML aggarwal( avichal publication) class 10th , chapter3, shares and dividends ……..
we have that :-
Amit kumar invests Rs 36000 in buying Rs 100 shares at Rs 20 premium. The dividend is 15% per annum.
so we have to find the
(i) The number of shares he buys
(ii) His yearly dividend
(iii) The percentage return on his investment.
kindly provide the best solution for all three sub-questions with explanation. please provide the formula if you use any.
Q no. 9, exercise 3, ML Publication, share and dividends
Given, Investment = Rs.36,000
Face value = Rs.100
Premium – Rs.20,
Market Value of one share = Rs.(100 + 20)
No of shares = Investment /market value
Yearly dividend = 15% of (100*300)
= RS 4500
% return =4500/36000*100 = 450/36
=12.5% = 13%