Advertisements
Advertisements
Question
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 is the return she gets as percent on her investment? Give your answer to the nearest integer.
Solution
Nominal value of 1 share = Rs. 100
Market value of 1 share = Rs. 100 + 40% of Rs. 100
= Rs. 100 + Rs. 40
= Rs. 140
No. of shares purchased = 1800
Nominal value of 1800 shares = 1800 × 100 = Rs. 1,80,000
Market value of 1800 shares = 1800 × 140 = Rs. 2,52,000
1. Dividend% = 15%
Dividend = 15% of Rs. 1,80,000
= `15/100 xx Rs. 1,80,000`
= Rs. 27,000
2. ∴ Return% = `"Income"/"Investment" xx 100%`
= `(27,000)/(2,52,000) xx 100%`
= 10.7%
= 11%
APPEARS IN
RELATED QUESTIONS
A man has a choice to invest in hundred-rupee shares of two firms at Rs. 120 or at Rs. 132. The first firm pays a dividend of 5% per annum and the second firm pays a dividend of 6% per annum. Find:
- which company is giving a better return.
- if a man invests Rs. 26,400 with each firm, how much will be the difference between the annual returns from the two firms.
Mr Gupta has a choice to invest in ten-rupee shares of two firms at Rs 13 or at Rs 16. If the first firm pays 5% dividend and the second firm pays 6% dividend per annum, find:
(1) which firm is paying better.
(2) if Mr Gupta invests equally in both the firms and the difference between the returns from them is Rs 30, find how much, in all, does he invest.
Calculate the percentage income in the following investments:
Rs 36,250 in a Rs 125 share paying 8% and available at a premium of Rs 20.
Aishwarya bought 496, Rs. 100 shares at Rs. 132 each, find:
- investment made by her.
- income of Aishwarya from these shares, if the rate of dividend is 7.5%.
- how much extra must aishwarya invest in order to increase her income by Rs. 7,200?
Ashok invested Rs. 26,400 in 12%, Rs. 25 shares of a company. If he receives a dividend of Rs. 2,475, find the:
- number of shares he bought.
- market value of each share.
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 man buys shares at the par value of Rs 10 yielding 8% dividend at the end of a year. Find the number of shares bought if he receives a dividend of Rs 300.
Find the percentage interest on capital invested in 18% shares when a Rs 10 share costs Rs 12.
The sum invested to purchase 15 shares of a company of nominal value ₹ 75 available at a discount of 20% is ______.
