Advertisements
Advertisements
Question
A company declares a dividend of 11.2% to all its share-holders. If its Rs. 60 share is available in the market at a premium of 25%, how much should Rakesh invest, in buying the shares of this company, in order to have an annual income of Rs. 1,680?
Solution
Nominal value of 1 share = Rs. 60
Market value of 1 share = Rs. 60 + 25% of Rs. 60
= Rs. 60 + Rs. 15
= Rs. 75
Let no. of shares purchased = n
Then nominal value of n shares = Rs. (60n)
Dividend% = 11.2%
Dividend = Rs. 1,680
∴ 11.2% of 60n = Rs. 1,680
`=> 11.2/100 xx 60n` = Rs. 1,680
`=> n = (1680 xx 100)/(11.2 xx 60) = 250`
Then market value of 250 shares = 250 × 75 = Rs. 18,750
APPEARS IN
RELATED QUESTIONS
A man buys 400, twenty-rupee shares at a premium of Rs. 4 each and receives a dividend of 12%. Find:
- the amount invested by him.
- his total income from the shares.
- percentage return on his money.
A company with 10,000 shares of nominal value Rs 100 declares an annual dividend of 8% to the shareholders
- Calculate the total amount of dividend paid by the company.
- Ramesh had bought 90 shares of the company at Rs 150 per share. Calculate the dividend he receives and the percentage of return on his investment.
Calculate the annual income of the following:
120 shares of Rs 50 each available at Rs 62 and paying 13% dividend.
Calculate the percentage income in the following investment:
Rs 12,375 in a Rs 75 share paying 4% and available at a discount of Rs 20.
Salman invests a sum of money in Rs. 50 shares, paying 15% dividend quoted at 20% premium. If his annual dividend is Rs. 600, calculate :
- the number of shares he bought.
- his total investment.
- the rate of return on his investment.
A lady holds 1800, Rs. 100 shares of a company that pays 15% dividend annually. Calculate her annual dividend. If she had bought these shares at 40% premium, what percentage return does she get on her investment? Give your answer to the nearest integer.
Ashok invests Rs.26400 on 12% Rs.25 shares of a company. If he receives a dividend of Rs 2475, find:
(i) the number of shares he bought.
(ii) the market value of each share.
A company with 10,000 shares of nominal value of Rs. 100 declares an annual dividend of 8% to the share-holders.
- Calculate the total amount of dividend paid by the company.
- Ramesh had bought 90 shares of the company at Rs. 150 per share. Calculate the dividend he receives and the percentage of return on his investment.
At what price should a 6.25% Rs. 100 shares be quoted when the money is worth 5%?
A man invests ₹ 24000 on ₹ 60 shares at a discount of 20%. if the dividend declared by the company is 10%, then his annual income is
