Question

By purchasing Rs. 50 gas shares for Rs. 80 each, a man gets 4% profit on his investment. What rate percent is company paying ? What is his dividend if he buys 200 shares?

Answer 1

Market value of each share = Rs 80
Face value of each share = Rs. 50
Interest on investment = 4%

Dividend on Rs. 80 = `(80 xx 4)/(100) = (32)/(10)` 

Now dividend on face value Rs. 50 = `(32)/(10)`

∴ Percent dividend = `(32)/(10) xx (100)/(50) = (64)/(10)` = 6.4%
No. of shares purchased = 200
∴ Face value of 200 shares
= Rs. 200 x 50
= Rs. 10000
DIvidend = Rs. 10000 x `(6.4)/(100)`
= Rs. 640.