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Rs. 50 shares of a company are quoted at a discount of 10%. Find the rate of dividend given by the company, the return on the investment on these shares being 20 per cent. - Mathematics

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Question

Rs. 50 shares of a company are quoted at a discount of 10%. Find the rate of dividend given by the company, the return on the investment on these shares being 20 per cent.

Sum

Solution

Nominal value of 1 share = Rs. 50

Market value of 1 share = Rs. 50 – 10% of Rs. 50

= Rs. 50 – Rs. 5

= Rs. 45

Profit% on investment = 20%

Then profit on 1 share = 20% of Rs. 45 =  Rs. 9

∴ Dividend% = `9/50 xx 100` = 18%

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Chapter 3: Shares and Dividend - Exercise 3 (B) [Page 36]

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Selina Mathematics [English] Class 10 ICSE
Chapter 3 Shares and Dividend
Exercise 3 (B) | Q 4 | Page 36

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