Question

man buys rupees 50 shares at rupees 10 premium of a company paying 12% dividend find the market value of 320 shares and his annual income​

Answer 1

Nominal value of 1 share = Rs. 50

Market value of 1 share = Rs. 50 + Rs. 10 =Rs. 60

Market value of 320 shares = 320 × 60 = Rs. 19,200

Nominal value of 320 shares = 320 × 50 = Rs. 16,000

Annual income = 12% of Rs. 16,000 /

a-man-buys-rs-50-shares-of-a-company-paying-12-per-cent-dividend-at-a-premium-of-rs-10-find

Answer 2

NV of 1 share=₹50

MV of 1 share=₹(50+10)

=₹60

MV of 320 shares=320×₹60

=₹19200

NV of 320 shares=320×₹50

=₹16000

annual income=12% of 16000

=12×16000/100

=₹1920

profit%=1920×100/19200

= 10%