Question

A man invests Rs. 9600 on Rs. 100 shares at Rs. 80. If the company pays him 18%
dividend find:
(1) The number of shares he buys.
(2) His total dividend.
(3) His percentage return on the shares

Answer 1

1) Market value = Rs. 80

Sum invested = Rs. 9600

Number of shares = `9600/80 = 120`

2) Nomial value (face value) = Number of shares c face value

= 120 xx Rs 100

= Rs 12000

`"Annual income = (Dividend)" % xx  National value"`

`= 18/100 xx 12000`

= 2160

3) Percantage return  =` "Income"/"Investment" xx 100% = 2160.9600 xx 100% = 22.5%