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By Investing Rs 7,500 in a Company Paying 10 per Cent Dividend, an Annual Income of Rs 500 is Received. What Price is Paid for Each of Rs 100 Share? - ICSE Class 10 - Mathematics

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Question

By investing Rs 7,500 in a company paying 10 per cent dividend, an annual income of Rs 500 is received. What price is paid for each of Rs 100 share?

Solution

Total investment = ₹ 7,500

Nominal value of 1 share = ₹ 100

No. of shares purchased = y

Nominal value of y shares = 100 x y = ₹ (100y)

Dividend% = 10%

Dividend = Rs 50

∴ 10% of 100y = Rs 500

`=> 10/100 xx 100y = "Rs"  500`

`=> y = 500/10 = 50  "shares"`

∴ market Value of 1 shares = `7500/50 = "Rs"  150`

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Solution By Investing Rs 7,500 in a Company Paying 10 per Cent Dividend, an Annual Income of Rs 500 is Received. What Price is Paid for Each of Rs 100 Share? Concept: Shares and Dividends.
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