A man invests rupees 8000 in a company paying 8 percent dividend, when a share of face value of rupees 100 is selling at rupees 60 premium. What is his annual income? What percent does he get on his money?
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Investment=8000
Rate of dividend=8%
Face value=100
Premium=60
Market value=face value+premium
=100+60
=160
Market value=investment/number of shares
>160=8000/number of shares
>Number of shares=8000/160
>Number of shares=50
1. Income=number of shares×rate of dividend/100×face value
Income=50×8/100×100
Income=50×8
Income=400
2. Percent return=income/investment×100
Percent return=400×100/8000
Percent return=5%
Hope this is understandable to you and help you!
Rate of dividend=8%
Face value=100
Premium=60
Market value=face value+premium
=100+60
=160
Market value=investment/number of shares
>160=8000/number of shares
>Number of shares=8000/160
>Number of shares=50
1. Income=number of shares×rate of dividend/100×face value
Income=50×8/100×100
Income=50×8
Income=400
2. Percent return=income/investment×100
Percent return=400×100/8000
Percent return=5%
Hope this is understandable to you and help you!
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