Question

Ashwarya bought 496, Rs100 shares at Rs 132 each, find :
(1) An investment made by her
(2) Income of Ashwarya from these shares, if the rate of dividend is 7.5%.
(3) How much extra must ashwarya invest in order to increase her income by Rs 7,200

Answer 1

Given ,

(i) The nominal value of each share = Rs 100
Market price of each share = Rs 132
Number of shares bought = 496
So , the investment made by her = `496 xx "Rs"  132 = "Rs"  65,472`

(ii) Dividend on 1 share = 7.5% of Rs 100 = Rs 7.5
Thus , the income of Ashwarya from these shares = `496 xx 7.5` = Rs 3,720

(iii) If she wants to increase her income by Rs 7,200
Then the number of shares she should buy = `"increase in the income" / "income of one share"`
= `(7,200)/7.5 = 960`
Therefore , she should invest an extra of = `960 xx "Rs"  132` = Rs 1,26,720 .