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# Hundred Rupee Shares of a Company Are Available in the Market at a Premium of Rs 20. Find the Rate of Dividend Given by the Company, When a Man’S Return on His Investment is 15%. - Mathematics

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#### Question

Hundred rupee shares of a company are available in the market at a premium of Rs 20. Find the rate of dividend given by the company, when a man’s return on his investment is 15%.

#### Solution

Nominal value of 1 share = Rs 100

Market value of 1 share = Rs 100 + Rs 20 = Rs 120

Profit% on investment of 1 share =15%

Then profit= 15% of Rs 120 = Rs 18

∴ Dividend% = 18/100 × 100% = 18%

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#### APPEARS IN

Selina Solution for Concise Mathematics for Class 10 ICSE (2020 (Latest))
Chapter 3: Shares and Dividend
Exercise 3(B) | Q: 3 | Page no. 36

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Hundred Rupee Shares of a Company Are Available in the Market at a Premium of Rs 20. Find the Rate of Dividend Given by the Company, When a Man’S Return on His Investment is 15%. Concept: Shares and Dividends.