a company pays a dividend of 15 percent on its Rs.100 shares for which the income tax at the rate of 20 percent is deducted.find the sum invested by ramesh when the shares of the company are available at a premium of 20 percent and the gain required by him after deduction of income tax is Rs.9000.
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dividend %= 15%
income tax %=20%
nominal value=100
sum invested=?
premium=20%
dividend=9000
first find market value.
MV=100+20% 0f 100
100+80=180
now dividend = NV multiplied by no of shares multiplied by dividend %
9000=100 times 15 by 100 times no of shares
9000 times 100 divided by 100 into 15=600.
therefore sum invested is 600 into 180= 108000
income tax %=20%
nominal value=100
sum invested=?
premium=20%
dividend=9000
first find market value.
MV=100+20% 0f 100
100+80=180
now dividend = NV multiplied by no of shares multiplied by dividend %
9000=100 times 15 by 100 times no of shares
9000 times 100 divided by 100 into 15=600.
therefore sum invested is 600 into 180= 108000
shelly8:
answer is incorrect. the correct answer is 90000
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