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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%, what will be his annual income?
(iii) If he wants to increase his annual income by Rs.150, how many extra shares should he buy?
Sum
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Solution
Number of shares bought = 50
N,V of one share = Rs, 100
M.V of each share = Rs 132
(I) Investment = M.V of each share x Number of shares
= Rs 132 x 50
= Rs 6600
(ii) Since dividend on 1 share = 7.5% of N.V = `7.5/100` x 100 = Rs 7.50
His annual income = Rs 7.50 x 50 = Rs 375
(iii) Extra shares to be bought = `"Increase in annual income"/"Income in one share" = 150/7.50` = 20
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