#### 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)