Question

A man buys shares at the par value of ₹ 10 yielding 8% dividend at the end of a year. Find the number of shares bought if he receives a dividend of ₹ 300.

Answer 1

Face value of each share = ₹ 10

Rate of dividend = 8% p.a.

Total dividend = ₹ 300

∴ Total face value of shares

= `(300 xx 100)/(8)`

= ₹ 3750

and no. of shares

= `(3750)/(10)`

= 375 shares