At what price should a 6.25% Rs. 50 share be quoted when the money is worth 10%?
Solution:
Interest on Rs. 100
worth = Rs. 10
If the interest is Rs. 10, then market value = Rs. 100
and if interest is Rs. 6.25, then market
A company with 10000 shares of Rs. 100 each, declares an annual dividend of 5%.
(i) What is the total amount of dividend paid by the company?
(ii) What would be the annual income of a man, who has 72 shares, in the company?
(iii) If he received only 4% on his investment, find the price he paid for each share. (1998)
Solution:
No. of shares = 10000
Face value of each share = Rs. 100
Rate of dividend = 5%
(i) Total face value of 10000 shares
= Rs. 100 × 10000
= Rs. 1000000
