A man invests rs 42000 in hundred rupees share of a company at a premium
of 20% the company pays 12% dividend annually find
1.the number of shares purchased
2. his annual income from the shares 3. the profit percentage from the shares
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No. of share with 20% premium=
120
14400
=120
Face value of the shares =120×100= Rs. 12000
He gets 5% dividend,
So, his annual dividend =
100
(5×12000)
= Rs. 600.
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