Question

Rohit Kulkami invests Rs 10000 in 10% Rs 100 shares of a company. If his annual dividend is Rs 800, find:

1. The market value of each share.
2. The rate percent which he earns on his investment.

Answer 1

Investment = Rs 10000

Face value of each share = Rs 100

Rate of dividend = 10%

Annual dividend = Rs 800

i. Market value = `(10000 xx 10)/(800)` = ₹ 125

ii. Rate percent on investment

= `(800 xx 100)/(10000)`

= 8%