Question

Salman buys 50 shares of face value Rs 100 available at Rs 132.
(i) What is his investment?
(ii) If the dividend is 7.5% p.a., what will be his annual income?
(iii) If he wants to increase his annual income by Rs 150, how many extra shares should he

Answer 1

Face Value = Rs 100
(i) Market Value = Rs 132
No. of shares = 50
Investment
= no. of shares x Market value
= 50 x 132
= Rs 6600
(ii) Income per share
= 7.5% of Face value

= `(75)/(10 xx 100)`
= ₹7.5
∴ Annual income
= 7.5 x 50
= ₹375
(iii) New anuual income
= 375 + 150
= ₹525
∴ No of shares

= `(525)/(7.5)`
= 70
∴ No. of extra share to be increased
= 70 - 50
= 20.