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# 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 - ICSE Class 10 - Mathematics

#### 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

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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.
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