Question

a man buys 200 ten rupee shares at Rs. 12.50 each and receives a dividend of 8%. Find the amount invested by him and dividend received by him in cash.

Answer 1

Hello Dear.

Here is the answer---

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Given---

Number of Shares (n) = 200
Nominal Value of One Share(N.V.) = Rs. 10
Market Value of the One Share(M.V.) = Rs. 12.50
Rate of Dividend or Income (r%) = 8 %

For the Investment,

Using the Formula,

  Investment = Number of Shares × M.V. of 1 Share
                    = 200 × 12.50
                    = Rs. 2500

Thus, the sum Invested by the man is Rs 2500.

For the Dividend,

Using the Formula,

  Dividend = n × (r%/100) × N.V. of 1 Share
                = 200 × (8/100) × 10
                = Rs. 160

Thus, the Income or the Dividend is Rs.160.
         

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Hope it helps.


Have a Nice Day.