Advertisements
Advertisements
Question
What sum should a person invest in Rs 25 shares, selling at Rs 36, to obtain an income of Rs 720, if the dividend declared is 12%? Also find the percentage return on his income.
(i) The number of shares bought by him.
(ii) The percentage return on his income.
Solution
Nominal value of each share = Rs.25
Market value of each share = Rs.36
Total income = ₹720
Rate of dividend = 12%
Total nominal value
= `(100)/(12) xx 720`
= ₹6000
(i) ∴ Number of shares
= `(6000)/(25)`
= 240
Total investment
= 240 x ₹36
= ₹8640
(ii) Percentage return
= `(720 xx 100)/(8640)`
= `8(1)/(3)`%.
APPEARS IN
RELATED QUESTIONS
How much money will be required to buy 400, Rs 12.50 shares at a premium of Rs 1?
A company declares 8 per cent dividend to the shareholders. If a man receives Rs. 2,840 as his dividend, find the nominal value of his shares.
A company pays a dividend of 15% on its Rs 100 shares from which income tax at the rate of 20% is deducted. Find :
(1) The net annual income of Gopal who owns 7,200 shares of this company
(2) The sum invested by Ramesh when the shares of this company are bought by him at 20% premium and the gain required by him(after deduction of income tax) is Rs 9,000
How much should a man invest in Rs. 50 shares selling at Rs. 60 to obtain an income of Rs. 450, if the rate of dividend declared is 10%. Also find his yield percent, to the nearest whole number.
Find the dividend received on 60 shares of Rs, 20 each if 9% dividend is declared.
A company declares 8 percent dividend to the share holders. If a man receives Rs. 2840 as his dividend, find the nominal value of his shares.
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.
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.
A company declared a dividend of 14%. Find tire market value of Rs. 50 shares if the return on the investment was 10%.
₹ 600 shares of a company are available at a discount of 20%. If the company pays a dividend of 20%, the rate of return is ______.
