Question

By investing Rs. 45,000 in 10% Rs. 100 shares, Sharad gets Rs. 3,000 as dividend. Find the market value of each share.

Answer 1

Annual income from 1 share = 10% of Rs. 100 = Rs. 10

Total annual income = Rs. 3,000

∴ Number of shares bought

=`"Total annual income"/"Annual income from 1 share"`

= `3000/10`

= 300

⇒ Market value of one share

= `"Total investment"/"Number of shares"`

= `45000/300`

= Rs. 150