Question

Ashok invested Rs. 26,400 on 12%, Rs. 25 shares of a company. If he receives a dividend of Rs. 2,475. Find the :

1) number of shares he bought

2) The market value of each share

Answer 1

1) Total dividend = Rs.2,475

Dividend on each share 12% of Rs 25 =`12/100 xx 25` = Rs .3 

∴ Number of shares bought = `"Total dividend"/"Dividend on 1 share" = 2475/3 = 825`

2) Market value of each share = `"Total Investment"/"Number of shares bought" = 26400/825`  = Rs 32