Advertisements
Advertisements
Question
How much should a man invest in Rs. 50 shares selling at Rs. 60 to obtain an income of Rs. 450, if the rate of dividend declared is 10%. Also find his yield percent, to the nearest whole number.
Advertisements
Solution
Since Dividend on 1 share 10% of Rs. 50 = `10/100 xx Rs 50 = Rs 5`
∴ Number of shares bought = `"Total dividend"/"Dividend on 1 share" = "Rs. 450"/"Rs 5" = 90`
Since market value of each share Rs. 60
∴ Sum invested by the man = 90 x Rs 60 = Rs 5400
Percentage return = `"Total return"/"Sum invested" xx 100% = (Rs 450)/(Rs 5400) xx 100% = 8.33% = 8%`
APPEARS IN
RELATED QUESTIONS
A man invests Rs. 22,500 in Rs. 50 shares available at 10% discount. If the dividend paid by the company is 12%, calculate:
- The number of shares purchased.
- The annual dividend received.
- The rate of return he gets on his investment. Give your answer correct to the nearest whole number.
Rajat buys Rs. 80 shares at 30% premium in a company paying 18% dividend. Find:
(i) The market value of 150 shares.
(ii) Rajat’s annual income from these shares.
(iii) Rajat’s percentage return from this investment.
A company gives x% dividend on its Rs. 60 shares, whereas the return on the investment in these shares is (x + 3) %. If the market value of each share is Rs. 50, find the value of x.
Mr. Gupta has a choice to invest in ten-rupee shares of two firm at Rs. 13 or at Rs. 16. If the first firm pays 5% dividend and the second firm pays 6% dividend per annum, find:
- which firm is paying better.
- if Mr. Gupta invests equally in both the firms and the difference between the returns from them is Rs. 30, find how much, in all, does he invest?
Anu has 750 shares of Rs 60 each of 'Tata Infotech' paying 15% dividend. Find her net income after paying 6% income tax.
Amitesh had 400 shares of Rs 100 each of 'Telco' paying a dividend of 12.5%. He sold them at a market price of Rs 125 and invested the proceeds in Rs 50 shares of 'Adani Motors' available in the market at Rs 80 and paying a dividend of 16%. How many shares of Adani Motors did Amitesh buy and what is the change in his annual income?
Rohit had 1000 shares of Rs 125 each of 'New Delhi Times' paying a dividend of 12%. He sold all of them at a market rate of Rs 150 and invested the proceeds in buying Rs 25 shares of BVL available at Rs 60 and paying 20% dividend. How many shares of BVL did Rohit buy and what is the change in his annual income?
Payal had Rs 125 shares of 'Asian Chemicals' paying 12% dividend. She sold them at Rs 150 and invested the proceeds in Rs 50 shares of 'Saras Chemicals' at Rs 40 and paying 10% dividend. She thus increased her income by Rs 825. Find the number of shares of 'Asian chemicals' that Payal sold.
Ananth had Rs 50 shares of 'Esco' paying 6% dividend. He sold them at a market price of Rs 80 and invested the proceeds in buying Rs 100 shares of 'Y2K Software' at Rs 150 and paying 11% dividend. He thus increased his annual income by Rs 2,150. How many shares of 'Esco' did he sell?
Mamta invested Rs. 10,846 in buying the shares of a company at Rs. 17 each. If the face value of each share be? 10 and company paid 15% dividend at the end of the year, find the dividend earned by her.
