Question

by investing rs 7500 in a company paying 10 percent dividend an annual income of rs 500 is received. what price is paid for each of rs 100 share?

Answer 1

total investment = Rs. 7500
rate of dividend = 10%
annual income = Rs. 500
nominal value = Rs. 100

therefore,
no. of shares = 500 × (100/10) × (1/100)
= 50 shares

market value = 7500/50
= Rs. 150

Answer 2

HEY....♥♥

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Total investment = Rs. 7,500

Nominal value of 1 share = Rs. 100

No. of shares purchased = y

Nominal value of y shares = 100 × y

= Rs. (100y)

Dividend % = 10%

Dividend = Rs. 500

∴ 10% of 100y = Rs. 500 ⟹ (10/100)

×100=.500 ⟹

y = 500/10

= 50 shares

∴ Market value of 1 share = 7,500/50=.150