#### Question

A man buys Rs 50 shares of a company, paying 12% dividend, at a premium of Rs 10. Find:

(1) the market value of 320 shares;

(2) his annual income;

(3) his profit per cent.

#### Solution

Nominal value of 1 share = Rs 50

Market value of 1 share = Rs 50 + Rs 10 = ₹ 60

Market value of 320 shares = 320 x 60 = Rs 19,200

Nominal value of 320 shares = 320 x 5 = Rs 16,000

Annual income = 12% of Rs 16000

`= 12/100 xx 16000`

= Rs 1920

Profit% = `1920/19200 xx 100% = 10%`

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Solution A Man Buys Rs 50 Shares of a Company, Paying 12% Dividend, at a Premium of Rs 10. Find: (1) the Market Value of 320 Shares; (2) His Annual Income; (3) His Profit per Cent. Concept: Shares and Dividends.