Question

a man invests rs. 8000 in a company paying 8% dividend when a share of face value of rs. 100 is selling at rs.60 premium what is his annual income?

Answer 1

market value =100+60=160
no of shares =investment / market value=8000/160=50
income=dividend %*face value*no Of shares /100=8*100*50/100=400
so annual income =rupees 400

Answer 2

Answer:

Annual Income = Rs. 400

Step-by-step explanation:

Amount invested by the man in a company = Rs. 8000

Face value = Rs. 100 and Selling Price = Rs. 60

⇒ Market value = 100 + 60 = Rs. 160

So, No. of shares = investment / market value

                             = 8000/160

                              = 50

Therefore, Income = (dividend × face value × No of shares)

                               = 0.08 × 100 × 50

                               = Rs. 400

Hence, Annual Income = Rs. 400