an important question from the book -ML aggarwal ( avichal publication)class 10th , chapter 3, shares and dividends ……..

this question has been asked in the exam .

it is given that By purchasing Rs. 50 gas shares for Rs. 80 each, a man gets 4% profit on his investment.

so we have to find What rate percent company is paying. and also we are asked to find What his dividend is ,if he buys 200 shares. solve this question in detail .

Q no. 27, exercise 3, ML Publication, share and dividends

Given market value of each share = Rs 80.

Face value of each share =Rs 50

Interest on investment = 4%

Dividend on Rs 80 = (80∗4)/100 = 32/10.

Percent dividend = (dividend/face value of each share)*100

(32/10)∗(100/50) = 64/10 = 6.4%

Number of share = 200

Face value of 200 shares = 200∗50 = Rs 10,000

Dividend = Rs 10,000∗(6.4/100) = Rs 640.