Question

₹ 2,250 is invested in buying ₹ 50 shares available at 10% discount and the dividend paid by the company is 12%.

Statement (1): Number of shares bought = `2250/45​` = 50.

Statement (2): Total dividend paid by the company = (12% of ₹ 50) × 50

Options

• Both the statements are true.

• Both the statements are false.

• Statement 1 is true, and statement 2 is false.

• Statement 1 is false, and statement 2 is true.

Answer 1

Both the statements are true.

Explanation:

Total investment = ₹ 2,250

Discount on shares = 10%

Dividend rate = 12%

Face value of each share = ₹ 50

Discounted value = 10% of ₹ 50

= `10/100 xx50`

= ₹ 5

Discounted price = ₹ 50 − 5

= ₹ 45

And, number of shares = `"Total Investment"/"Market Value of 1 share"`

= `2250/45`

= 50

So, statement 1 is true.

The annual dividend = number of shares × rate of dividend × face value of one share

= 50 × 12% × 50

= (12% of ₹ 50) × 50

So, statement 2 is true.

Hence, option 1 is correct.