Question

A man invests Rs 42000 in hundred rupee shares of a company at a premium
of 20% . The company pays 12% dividend annually. Find
(i) the number of shares purchased
(ii) his annual income from the shares and
(iii) the profit per cent from the shares.

Answer 1

Step-by-step explanation:

ANSWER

No. of share with 20% premium= 14400÷120

=120

Face value of the shares =120×100= Rs. 12000

He gets 5% dividend,

So, his annual dividend =

100

(5×12000)

= Rs. 600.