Question

Assertion (A): Income of a share holder is directly proportional to the number of shares he buys.

Reason (R): Income of a share holder = Face value × `("No. of shares" xx "Rate of dividend")/100`

Options

• A is true, R is false

• A is false, R is true

• Both A and R are true

• Both A and R are false

Answer 1

Both A and R are true

Explanation:

Dividend per share = `"Face value" xx ("Rate of dividend")/100`

So, total income = (Dividend per share) × (No. of shares)

= `"Face value" xx "No. of shares" xx "Rate"/100`

Hence, income is directly proportional to the number of shares if face value and rate are fixed.