Question

answer my questions
plz​

Answer 1

Answer:

Step-by-step explanation:

Part (i)

• The man bought 350 shares which have a nominal value of Rs. 100.
• Premium is 20%, and since nominal value of shares is Rs. 100, the premium is 20% of Rs. 100 = Rs. 20
• So cost of each share is: nominal value + premium = Rs. 100 + Rs 20 = Rs. 120
• Total investment = "Number of shares" X "Cost of each share"
• Total investment = 350 X Rs. 120
• Total investment = Rs. 42,000  (ANSWER)

Part (ii)

• Dividend is calculated on nominal value, i.e. Rs. 100.
• Since the dividend is 12%, the man gets Rs. 12 per share annually.
• Since he owns 350 shares, his annual income = 350 X Rs. 12
• Annual income = Rs. 4,200 (ANSWER)

Part (iii)

• Rate of return = (Annual return X 100) / Initial value
• Rate of return = (4200 X 100) / 42000
• Rate of return = 10% (ANSWER)

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