#### Salman buys 50 shares of face value Rs 100 available at Rs 132.

(i) What is his investment?

(ii) If the dividend is 7.5% p.a., what will be his annual income?

(iii) If he wants to increase his annual income by Rs 150, how many extra shares should he

**Solution:**

Face Value = Rs 100

(i) Market Value = Rs 132

No. of shares = 50

Investment = no. of shares × Market value

= 50 × 132 = Rs 6600

#### A lady holds 1800, Rs. 100 shares of a company that pays 15% dividend annually. Calculate her annual dividend. If she had bought these shares at 40% premium, what percentage return does she get on her investment ? Give your answer to the nearest integer.

**Solution:**

Total number of shares = 1800

Nominal value of each share = Rs. 100

Rate of dividend = 15%