Amit owns 1500, rs 25 shares of a company which declares a dividend of 14% . He sells the shares at rs 40 each and invests the proceeds in 8%, rs 100 shares at rs 80. What is the change in his annual dividend income ?
Answers
Given : Amit owns 1500, rs 25 shares of a company which declares a dividend of 14% . He sells the shares at rs 40 each and invests the proceeds in 8%, rs 100 shares at rs 80
To find : change in his annual dividend income
Solution:
Shares 1500
Share FV = Rs 25
Dividend = 14%
annual Dividend = number of shares * ( dividend % /100) * FV
= 1500 * (14/100) * 25
= Rs 5250
Shares sold for = 1500 * 40 = Rs 60000
Shares Bought = 60000/80 = 750
Dividend per share = (8/100) 100 = Rs 8
Annual Dividend = 750 * 8 = Rs 6000
Change in his annual Dividend income = 6000 - 5250 = Rs 750
Rs 750 increase in annual Dividend income
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Answer:
750
Step-by-step explanation:
As per the above steps