Question

Mr. Gupta invested ₹ 33000 in buying ₹ 100 shares of a company at 10% premium. The dividend declared by the company is 12%.

Find:

1. the number of shares purchased by him
2. his annual dividend.

Answer 1

Money invested = ₹ 3,000

N.V. = ₹ 100

M.V. = `₹(100 + 10/100 xx 100) xx ₹ 100`

Dividend given = 12%

a. Number of shares purchased = `(33,000)/110` = 300

b. Annual dividend = Number of shares × Rate of dividend × Face value of one share

= `300 xx 12/100 xx 100`

= ₹ 3600