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%
