Maharashtra State BoardHSC Commerce 11th
Advertisement Remove all ads

Ashwini bought Rs. 40 shares at a premium of 40%. Find the income, if Ashwini invests Rs. 14000 in these shares and receives a dividend at the rate of 8% on the nominal value of the shares. - Mathematics and Statistics

Sum

Ashwini bought Rs. 40 shares at a premium of 40%. Find the income, if Ashwini invests Rs. 14000 in these shares and receives a dividend at the rate of 8% on the nominal value of the shares.

Advertisement Remove all ads

Solution

Given,

Face value of the shares (F.V.) = ₹ 40

Premium = 40%

∴ The market value of the shares (M.V.)

= `40 + (40 xx 40/100)`

= 40 + 16

= ₹ 56

Ashwini invests ₹ 14000 in these shares

∴ Number of shares bought by Ashwini = `"Amount invested"/"Market value of one share" = 14000/56 = 250`

Dividend = 8%

∴ Annual income on one share = `8/100 xx 40`

= ₹ 3.2

∴ Income of Ashwini on 250 shares = 250 × 3.2

= ₹ 800

∴ Ashwini earns ₹ 800 on her investment.

Concept: Shares and Dividends
  Is there an error in this question or solution?
Advertisement Remove all ads

APPEARS IN

Balbharati Mathematics and Statistics 2 (Commerce) 11th Standard HSC Maharashtra State Board
Chapter 9 Commercial Mathematics
Exercise 9.7 | Q 9 | Page 142
Advertisement Remove all ads
Advertisement Remove all ads
Share
Notifications

View all notifications


      Forgot password?
View in app×