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
Ashok invests Rs 26400 on 12% Rs 25 shares of a company. If he receives a dividend of Rs 2475, find:
(i) the number of shares he bought.
(ii) the market value of each share. (2016)
Solution:
Investment = Rs 26400
Face value of each share = Rs 25
Rate of dividend = 12%
and total dividend = Rs 2475
We know,
