Question

Ramesh invested Rs 5,100 in buying shares of L T Infomedia at Rs 51 each. The face value of a share was Rs 10. The company paid 15% dividend at the end of the year. Find the income earned by Ramesh.

Answer 1

$Face \: value \: of \: a \: share = Rs \: 10$

$Market \: value \: of \: the \: share = Rs\:51$

$Investment = Rs \: 5100$

$Number \: of \: shares = \frac{Investment}{market \: value } \\= \frac{5100}{51} \\= 100$

$Dividend \:paid = 15\%$

$\red{ Income \: earned \: per \: share } \\= 15\% \: of \: face \:value \\= 15\% \times 10 \\= \frac{15}{100}\times 10\\= 0.15 \times 10 \\= 1.5\: --(1)$

$\red{ Income \: earned \: 100 \: shares} \\= 100 \times 1.5 \: \blue { [From \: (1) ])}\\= Rs \: 150$

Therefore.,

$\red{ Income \: earned \: by \: Ramesh }\green {= Rs \: 150}$

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