Tamil Nadu Board of Secondary EducationHSC Commerce Class 11th

# Mohan invested ₹ 29,040 in 15% of ₹ 100 shares of a company quoted at a premium of 20%. Calculate the number of shares bought by Mohan his annual income from shares the percentage return on his - Business Mathematics and Statistics

Sum

Mohan invested ₹ 29,040 in 15% of ₹ 100 shares of a company quoted at a premium of 20%. Calculate

1. the number of shares bought by Mohan
2. his annual income from shares
3. the percentage return on his investment

#### Solution

Investment = ₹ 29,040

Rate of dividend = 15%

Number of shares = 100

i. Number of shares = "Investment"/("Market value of a share")

= 29040/(100 + 20)

= 29040/120

= 242

ii. Annual income from shares = (Number of shares) × (Face value of a share) × (Rate of dividend)

= 242 × 100 × 15100

= ₹ 3630

iii. The percentage return on his investment = "Income"/"Investment" xx 100

= 3630/29040 xx 100

= 100/8

= 12.5%

= 12 1/2%

Concept: Stocks, Shares, Debentures and Brokerage
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