Question

Find Annual income for 55 shares of Rs. 100 paying 5% dividend​

Answer 1

Answer:

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Question

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A man invests Rs. 7,770 in a company paying 5 per cent dividend when a share of nominal value of Rs. 100 sells at a premium of Rs. 5. Find percentage income (rounded off to nearest integer).

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Solution

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Correct option is B)

Total investment = Rs. 7770

Nominal value = Rs. 100

Premium = Rs. 5

Dividend = 5%

∴ Market value = 100+5= Rs. 105

No of share=

Market value

Total investment

=

105

7770

=74

∴ Annual income = number of share × dividend× nominal value

⇒74×

100

5

×100= Rs. 370

Income % =

investment

income

×100%

⇒

7770

370

×100=4.76 %= 5%