Question

A man buys 200 rupees 10 shares at rupees 12.50 each and receives a dividend of 8% find the amount invested by him and the dividend received by him in cash

Answer 1

Hi.

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Here is your answer---

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Given---

Number of Shares = 200

Nominal Value of One share(N.V.) = Rs. 10

Market Value of One Share(M.V.) =Rs.12.50

Rate of Dividend(r%) = 8%

For Investment---

Using the Formula,
    Investment = Number of Shares x M.V. of 1 share.
                      =  200 x 12.50
                      = Rs. 2500

Thus, Investment is Rs.2500.

For Dividend,

 Using Formula of Dividend,
 
Dividend = Number of shares x r% x N.V. of One Share
               = 200 x (8%/100) x 10
               =  Rs. 160

Thus, the Annual Income(or Dividend) of the man is  Rs. 160


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