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