b) A man buys 400, Rs. 10 shares at a premium of Rs. 2.50 on each share,
if the rate of dividend is 12%, find:
i) his investment
ii) Annual dividend received by him.
iii) rate of interest received by him on his money.
Answers
i) His total investment is 5000 Rs.
ii) Annual dividend is 480 Rs. received by him.
iii) Percentage rate is 9.6%
Step-by-step explanation:
Number of shares a man buys = 400
Nominal Value of one share (N.V.) = 10 Rs.
Nominal Value of 400 shares = 400 × 10 = 4000 Rs.
Market Value (N.V. + Premium of a share) per share = 10 + 2.50
= 12.50 Rs.
i) His total investment = 12.50 × 400 = 5000 Rs.
ii) Annual dividend = 12% of 4000
= 0.12 × 4000
= 480 Rs.
iii) Rate of interest received by him =
=
= 9.6%
i) His total investment is 5000 Rs.
ii) Annual dividend is 480 Rs. received by him.
iii) Percentage rate is 9.6%
Learn more about dividend and rate of interest : https://brainly.in/question/3488897
Answer:
Step-by-step explanation:
Number of shares a man buys = 400
Nominal Value of one share (N.V.) = 10 Rs.
Nominal Value of 400 shares = 400 × 10 = 4000 Rs.
Market Value (N.V. + Premium of a share) per share = 10 + 2.50
= 12.50 Rs.
i) His total investment = 12.50 × 400 = 5000 Rs.
ii) Annual dividend = 12% of 4000
= 0.12 × 4000
= 480 Rs.
iii) Rate of interest received by him =
=
= 9.6%
i) His total investment is 5000 Rs.
ii) Annual dividend is 480 Rs. received by him.
iii) Percentage rate is 9.6%