# 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.

#### Solution

Given,

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