#### ₹ 40 shares of a company are selling at 25% premium. If Mr. Jacob wants to buy 280 shares of the company, then the investment required by him is

(a) ₹ 11200

(b) ₹ 14000

(c) ₹ 16800

(d) ₹ 8400

**Solution:**

Face value of each share = ₹ 40

M.V. = 40 x = ₹ 50

Number of shares = 280

Total investment = ₹ 280 × 50 = ₹ 14000 (d)

#### Arun possesses 600 shares of ₹ 25 of a company. If the company announces a dividend of 8%, then Arun’s annual income is

(a) ₹ 48

(b) ₹ 480

(c) ₹ 600

(d) ₹ 1200

**Solution:**

Number of shares = 600

F.V. of each share = ₹ 25

Rate of dividend = 8%

Annual income = 600 × 25 ×

= ₹ 1200 (d)