#### Question

A dividend of 12% was declared on Rs 150 shares selling at a certain price. If the rate of return is 10%, calculate:

(1) the market value of the shares.

(2) the amount to be invested to obtain an annual dividend of Rs 1,350.

#### Solution

1) Nominal value of 1 share = Rs 150

Dividend% = 12%

Dividend on 1 share =12% of Rs 150

` 12/100 xx "Rs" 150 = "Rs" 18`

= y = Rs 180

2) When dividend is Rs 18 then investment is Rs 180

When dividend is Rs 1350 then investment

` 180/18 xx "Rs" 1350`

= Rs 13500

Is there an error in this question or solution?

Solution A Dividend of 12% Was Declared on Rs 150 Shares Selling at a Certain Price. If the Rate of Return is 10%, Calculate: (1) the Market Value of the Shares. (2) the Amount to Be Invested to Obtain an Concept: Shares and Dividends.