Question

By investing Rs 45,000 in 10% Rs 100 shares, Sharad gets Rs 3,000 as the dividend. Find the market value of each share.

Answer 1

Annual income from 1 share = 10% of Rs 100 = Rs 10

Total annual income = Rs 3000

∴ Number of  shares bought = `"Total annual income"/"Annual income from 1 share" = 3000/10 = 300`

=> Market value of one share = `"Total Investment"/"Number of shares" = 45000/300 = Rs     150`