Question

14. A man invests 11200 in a company paying 6%
dividend when its 100 share can be bought for
140. Find:
(i) his annual income.
(ii) the percentage income on his investment.
(ICSE 1998)​

Answer 1

Step-by-step explanation:

Nominal value of 1 share = Rs.100 Market value of 1 share = Rs. 140 Total investment = Rs. 11,200 ∴ No of shares purchased = 11,200/140=80 shares Then nominal value of 80 shares = 80 × 100 = Rs.8000.

Answer 2

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.

Step by step 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 x 100 = Rs. 8,000

1) Dividend% = 6%

Dividend = 6% of Rs. 8,000

= 6/100 x Rs. 8000 = Rs. 480

2) Return% = Income/Investment x 100%

= 480/11200 x 100%

= 4.29%

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