Question

ashok invests Rs26400 on 12% Rs25 shares of a company .If he receives a dividend of Rs2475,find (i)the number of sheres he bought (ii)the market value of each share.

Answer 1

let the number of shares be x
dividend = 2475
( x ) x 25 x (12/100) = 2475
x = 2475/3
x = 825

1)number of shares = 825

investment = 26400
2)MV = 26400/825 = 32

Answer 2

Ashok has bought 825 shares and the market value of each share is Rs. 32

Given:

    Investment of Ashok: Rs 26400.

    Dividend Percentage of Ashok’s investment = 12%

    Fixed Value (company share) = 25

    Dividend received by Ashok = 2475

Solution:

(i) Annual Dividend =$(\text {Number of shares}) \times D \% \times \text{Fixed value }$

2475=$x \times\left(\frac{12}{100}\right) \times 25$

$\begin{array}{c}{2475=3 x} \\ {x=825}\end{array}$

Therefore, number of shares he bought is 825.

(ii) Market value = Investment/ Number of shares  

                  $=\frac{26400}{825}$

                     =Rs.32.

Hence, the each share has a market value of Rs.32.