Question

Sachin and Dhoni invest ₹ 36000 each in buying shares of two companies. Sachin buys 15% ₹ 40 share at a discount of 20%, while Dhoni buys ₹ 75 share at a premium of 20%. If both receive equal dividends at the end of the year, find the rate per cent of the dividend declared by Dhoni’s company.

Answer 1

Given:

Sachin and Dhoni each invest ₹ 36,000

Sachin buys 15% ₹40 shares at 20% discount

Dhoni buys ₹ 75 shares at 20% premium

Face value = ₹ 40

Number of shares `= 36000/32`

= 1125

Dividend per share = 15% of ₹ 40

= ₹ 6

Total dividend = 1125 × ₹ 6

= ₹ 6750

Dhoni’s purchase details

Market price = ₹ 75 + 20% of ₹ 75

= ₹ 90

Investment = ₹ 36,000

Number of shares = `36000/90`

= 400

Let the dividend rate be x% on face value ₹ 75.

Dividend per share = `x/100xx75`

⇒ Total dividend `=400xx x/100 xx75`

= ₹ 6750

= `400 xx x/100 xx75`

= 6750

⇒ 300x = 6750

`x = 6750/300`

= 22.5