Question

A lady hold 1800, rs 100 shares of a company that pays 15% dividend annually. Calculate her annual dividend. If she had bought these shares at 40% premium, what percentage return does she get on her investment?

Answer 1

project 1800 in 200 upon 15 the answer will come calculate again along with answer upon 40 degree in to 100.

Answer 2

Given total number of shares = 1800

Nominal value of each share = Rs. 100

And rate o dividend = 15%

Total face value of 1800 shares = 100 × 1800

$\LARGE{ \underline{\underline{ \pink{ \bf{= Rs. 180000}}}}}$

Therefore total dividend = 180000 × 15/100

$\LARGE{ \underline{\underline{ \pink{ \bf{= Rs. 2700}}}}}$

Therefore market value of each share = 100 + 40 = Rs. 140

Now the total investment = 140 × 1800

$\LARGE{ \underline{\underline{ \pink{ \bf{= Rs. 252000}}}}}$

Therefore percentage on his return

= (27000 × 100)/ 252000

= 10.7%

$\LARGE{ \underline{\underline{ \pink{ \bf{In \: integers \: 11 \: percent}}}}}$