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A Man Invests Rs 11,200 in a Company Paying 6 per Cent per Annum When Its Rs 100 Shares Can Be Bought for ₹ 140. Find: 1) His Annual Dividend 2) His Percentage Return on His Investment. - ICSE Class 10 - Mathematics

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Question

A man invests Rs 11,200 in a company paying 6 per cent per annum when its Rs 100 shares can be bought for ₹ 140. Find:

1) his annual dividend

2) his percentage return on his investment.

Solution

Nominal value of 1 share = Rs 100

Market value of 1 share = Rs 140

Total investment = Rs 11,200

No of shares purchased = `11200/140 = 80` shares

Then nominal value of 80 shares= 80 × 100= Rs 8,000

1) Dividend% = 6%

Dividend = 6% of Rs 8,000

`= 6/100 xx "Rs"  8000 = "Rs"  480`

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

`= 480/11200 xx  100%`

=4.29%

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Solution A Man Invests Rs 11,200 in a Company Paying 6 per Cent per Annum When Its Rs 100 Shares Can Be Bought for ₹ 140. Find: 1) His Annual Dividend 2) His Percentage Return on His Investment. Concept: Shares and Dividends.
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