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Rajat Buys Rs. 80 Shares at 30% Premium in a Company Paying 18% Dividend. Find: (I) the Market Value of 150 Shares. (Ii) Rajat’S Annual Income from These Shares. (Iii) Rajat’S Percentage Return - ICSE Class 10 - Mathematics

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Question

Rajat buys Rs. 80 shares at 30% premium in a company paying 18% dividend. Find:
(i) The market value of 150 shares.
(ii) Rajat’s annual income from these shares.
(iii) Rajat’s percentage return from this investment.

Solution

Nominal value of 1 share = Rs. 80
Market value of 1 share = Rs. 80 + 30% of Rs. 80
= Rs. 80 + Rs. 24 = Rs. 104
Market value of 150 shares = Rs. 104 × 150 = Rs. 15,600
Nominal value of 150 shares = Rs. 80 × 150 = Rs. 12,000
Dividend% = 18%
Dividend = 18% of Rs. 12,000

= `18 /100`×12,000 = 𝑅s. 2,160

Income% =`( Income)/
(Investment)` × 100%

=` (2,160)/ (15,600)`×100%

= 13.85%.

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Solution Rajat Buys Rs. 80 Shares at 30% Premium in a Company Paying 18% Dividend. Find: (I) the Market Value of 150 Shares. (Ii) Rajat’S Annual Income from These Shares. (Iii) Rajat’S Percentage Return Concept: Shares and Dividends Examples.
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