Question

Ashok invested Rs. 26,400 in 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. market value of each share.

Answer 1

i. Total dividend = Rs. 2,475

And dividend on each share

= 12% of Rs. 25

= `12/100 xx Rs. 25`

= Rs. 3

∴ Number of shares bought

= `"Total dividend"/"Dividend on 1 share"`

= `2475/3`

= 825

ii. Market value of 825 shares = Rs. 26,400

∴ Market value of each share

= `"Total investment"/"No. of shares"`

= `26400/825`

= Rs. 32