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Question
David invests ₹ 9600 in a company paying 8% dividend p.a., when a share of face value of 100 stands at ₹ 120. His annual income is ______.
Options
₹ 768
₹ 480
₹ 640
₹ 800
MCQ
Fill in the Blanks
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Solution
David invests ₹ 9600 in a company paying 8% dividend p.a., when a share of face value of 100 stands at ₹ 120. His annual income is ₹ 640.
Explanation:
Given:
Investment = ₹ 9600
Face value per share = ₹ 100
Market price per share = ₹ 120
Dividend = 8% per annum
Number of shares = `3600/120`
= 80
Dividend per share = 8% of ₹ 100
= ₹ 8
Income = 80 × ₹ 8
= ₹ 640
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