#### A man invests Rs. 8000 in a company paying 8% dividend when a share of face value of Rs. 100 is selling at Rs. 60 premium,

(i) What is his annual income,

(ii) What percent does he get on his money?

**Solution:**

Investment = Rs. 8000

Face value of each share = Rs. 100

Market value = Rs. 100 + Rs. 60

= Rs. 160

Rate of dividend = 8% p.a.

#### A man buys 400 ten-rupee shares at a premium of Rs. 2.50 on each share. If the rate of dividend is 8%, Find,

(i) his investment

(ii) dividend received

(iii) yield.

**Solution:**

No. of shares = 400

Face value of each share = Rs. 10

Market value of each share

= Rs. 10 + Rs. 2.50

= Rs. 12.50

Rate of dividend = 8%