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

**Salman buys 50 shares of face value Rs 100 available at Rs 132. then we have to find out
**

**(i) his investment?**

**(ii) his annual income, If the dividend is 7.5% p.a.**

**(iii) extra shares,If he wants to increase his annual income by Rs 150, **

Q no. 5, exercise 5, ML Publication, share and dividends

Given face value = Rs 100

(i) Given that:- market value = Rs 132

number of shares = 50

We know, investment = number of shares × market value

=50 × 132

= Rs 6600

(ii) We have income per share = 7.5% of face value

= 100*7.5%

= Rs. 7.5

Therefore annual income = 7.5 × 50= Rs 375

(iii) Therefore new annual income = 375 + 150 = Rs 525

Therefore number of shares = 525/7.5 = 70

Therefore, number of extra share to be increased = 70 – 50= 20