Question

[Maths]
#SharesAndDividends

Question:-
Rohit Kulkarni invests ₹10000 in 10% ₹100 shares of a company. If his annual dividend is ₹800, find:
(i) market value of each share.
(ii) Rate percentage which he earns on his investments.

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Answer 1

Step-by-step explanation:

Given :-

Rohit Kulkarni invests ₹10000 in 10% ₹100 shares of a company. His annual dividend is ₹800.

To find :-

Find the following :

(i) market value of each share.

(ii) Rate percentage which he earns on his investments.

Solution :-

Money invested by Rohit Kulakarni

= ₹10000

Rate = 10%

value of shares = ₹100

His annual dividend = ₹800

We know that

Dividend= (value of one share × Number of shares × Rate) /100

=> 800 = (100×Number of shares × 10)/100

=> 800 = (1000×Number of shares)/100

=> 800 = 10× Number of shares

=> Number of shares = 800/10

=> Number of shares = 80

Total Investment =

=> Market value × Number of shares

=> Market value = Total Investment/Number of shares

=> 10000/80

=> Market value of each sahre = ₹ 125

And

We know that

Rate of return =[(Dividend/Investment)× 100]%

Rate of return = [( 800/ 10000 )× 100]%

Rate of return = (8/100)×100%

=> Rate of return = 800/100%

=> Rate of return = 8%

Answer:-

i) The market value of each share for the given problem is ₹ 125

ii)Rate percentage which he earns on his investments is 8%

Used formulae:-

Dividend = (value of one share × Number of shares × Rate) /100

Total Investment = Market value ×Number of shares

Rate of return = [(Dividend/Investment) × 100]%

Answer 2

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