Question

By investing Rs 10500 in a company paying 8% dividend , an annual income of Rs 700 is received. What price is paid for each of Rs 100 share ?

Answer 1

Answer:

Step-by-step explanation:

∵ Rs 8 divident received on  base value of Rs 100

∴ 1 --------------------------------------------------------------- = 100÷8

∴ 700 ---------------------------------------------------------- = 100×700÷8 = 8750

∵ 100 is paid for 1 share

∴ 1 ----------------------------- = 1÷100

∴ 8750 ---------------------- = 8750×1÷100 = 87.50

∴ 10500 -------------------- = 10500×1÷100 = 105

Price paid for each of Rs 100 share = 105-87.50= 17.50

Answer - Rs 17.50 paid for each of Rs 100 share