Question

rupee 67200 are invested in rs 100 shares which are quoted at rs 120. find the income if 12% dividend is declared on the shares

Answer 1

investment=market value*number of shares
67200/120 =number of shares
560=number of shares

dividend=dividend% \ 100*nominal value*number of shares

dividend=12/100* 100*560

dividend =12*560

dividend= 6720

Answer 2

GIVEN : Investment = 67,200 ; dividend rate = 12 % ; price of one share = 120

TO  FIND : Dividend on the shares

SOLUTION :

Investment =  Market Value × Number of Shares

  67,200 =  120 × Number of shares

$\frac{67,200}{120}$  = Number of Shares

560 = Number of Shares

Dividend = 12 % of face value

               = 12% of 100

               = 12

Total Income = Number of share × dividend

                       = 560 × 12

                       = 6,720

Dividend recieved from shares is rupees 6,720.