) A man has choice to invest in hundred-rupee shares of two companies A and B .
Shares of company A are available at a premium of 20% and it pays 8% dividend
whereas shares of company B are available at a discount of 10% and it pays 7%
dividend , If the man invests equally in both the companies and the sum of the return
from them is Rs 936 , find how much , in all , does he invest ?
Answers
Answer:
Step-by-step explanation:
FIRST COMPANY -
Market value of 1 share =Rs. 120=Rs.120
Money invested =Rs. 26400=Rs.26400
Number of shares bought =\dfrac{26400}{120}=
120
26400
=220=220
Dividend of 1 share on Rs.100=5\%Rs.100=5% of Rs. 100=Rs.5Rs.100=Rs.5
Dividend of 220220 shares =220\times 5=Rs.1100=220×5=Rs.1100
Annual return =Rs.1100=Rs.1100
SECOND COMPANY -
Market value of 1 share =Rs. 132=Rs.132
Money invested =Rs. 26400=Rs.26400
Number of shares bought =\dfrac{26400}{132}=
132
26400
=200=200
Dividend of 1 share on Rs.100=6\%Rs.100=6% of Rs. 100=Rs.6Rs.100=Rs.6
Dividend of 200200 shares =200\times 6=Rs.1200=200×6=Rs.1200
Annual return =Rs.1200=Rs.1200
a). So, second company is paying better return.
b). Difference in annual return =1200-1100=1200−1100
=Rs.100=Rs.100
Hence, solved.
Answer:
FIRST COMPANY -
Market value of 1 share =Rs.120
Money invested =Rs.26400
Number of shares bought =
120
26400
=220
Dividend of 1 share on Rs.100=5% of Rs.100=Rs.5
Dividend of 220 shares =220×5=Rs.1100
Annual return =Rs.1100
SECOND COMPANY -
Market value of 1 share =Rs.132
Money invested =Rs.26400
Number of shares bought =
132
26400
=200
Dividend of 1 share on Rs.100=6% of Rs.100=Rs.6
Dividend of 200 shares =200×6=Rs.1200
Annual return =Rs.1200
a). So, second company is paying better return.
b). Difference in annual return =1200−1100
=Rs.100
Hence, solved.