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A Lady Holds 1800, Rs 100 Shares of a Company that Pays 15% Dividend Annually. Calculate Her Annual Dividend. If She Had Bought These Shares at 40% Premium, What is the Return She Gets as per Cent on - ICSE Class 10 - Mathematics

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Question

A lady holds 1800, Rs 100 shares of a company that pays 15% dividend annually. Calculate her annual dividend. If she had bought these shares at 40% premium, what is the return she gets as per cent on her investment? Give your answer to the nearest integer.

Solution

Nominal value of 1 share = Rs 100

Market value of 1 share = Rs 100 + 40% of Rs 100

= Rs 100 + Rs 40 = Rs 140

No. of shares purchased = 1800

Nominal value of 1800 shares = 1800 × 100 = ₹ 1,80,000

Market value of 1800 shares= 1800 × 140 = ₹ 2,52,000

(1)Dividend% = 15%

Dividend = 15% of Rs 1,80,000

`= 15/100 xx "Rs"  180000 = "Rs"  27000`

(2) ∴ Return% = `"Income"/"Investment" xx 100%`

`= 27000/252000 xx 100% = 10.7% = 11%`

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Solution A Lady Holds 1800, Rs 100 Shares of a Company that Pays 15% Dividend Annually. Calculate Her Annual Dividend. If She Had Bought These Shares at 40% Premium, What is the Return She Gets as per Cent on Concept: Shares and Dividends.
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