A man invests ₹ 24000 on ₹ 60 shares at a discount of 20%. if the dividend declared by the company is 10%, then his annual income is
(a) ₹ 3000
(b) ₹ 2880
(c) ₹ 1500
(d) 1440
Solution:
Investment = ₹ 24000
F.V. of each share = ₹ 60
M.V. at discount of 20% = 60 × = ₹ 48
Rate of dividend = 10%
Salman has some shares of ₹50 of a company paying 15% dividend. If his annual income is ₹3000, then the number of shares he possesses is
(a) 80
(b) 400
(c) 600
(d) 800
Solution:
F.V. of each share = ₹ 50
Dividend = 15%
Annual income = ₹ 3000
Let x be the share, then
F.V. of shares = x × 50 = ₹ 50x
₹ 25 shares of a company are selling at ₹ 20. If the company is paying a dividend of 12%, then the rate of return is
(a) 10%
(b) 12%
(c) 15%
(d) 18%
Solution:
F.V. of each share = ₹ 25 ,
M.V. = ₹ 20
Rate of dividend = 12%
Dividend on each share = x 25 = ₹ 3
Return on ₹ 20 = ₹ 3
and on ₹ 100 = ₹ x = 15% (c)