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Question
By purchasing 100 shares of a company for ₹ 150 each, a man gets 10% per annum on his investment. The rate percent the company paying is ______.
Options
8%
11%
12%
15%
MCQ
Fill in the Blanks
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Solution
By purchasing 100 shares of a company for ₹ 150 each, a man gets 10% per annum on his investment. The rate percent the company paying is 15%.
Explanation:
Given:
Number of shares = 100
Purchase price per share = ₹ 150
The man earns 10% return on his investment
Total investment:
100 × ₹ 150
= ₹ 15,000
Annual income = 10% of ₹ 15,000
= ₹ 1500
Assume face value of each share = ₹ 100
Total face value = 100 × ₹ 100
= ₹ 10,000
Let the dividend rate = x%
x% of ₹ 10,000 = ₹ 1500
`=> x/100 xx 10000`
= 1500
`=> x = (1500 xx 100)/10000`
= 15%
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