Business Studies, asked by gilu2908, 11 months ago

Salam invest a sum of money in rupees 50 shares paying 15% dividend quoted at 20% premium. If his annual dividend is rupees 600, calculate his total investment

Answers

Answered by hritiksingh1
14

ANSWER

Nominal value of 1 share = Rs. 50

Dividend on 1 share =

15/100 ×50= Rs. 7.50

Total Dividend of Salman = Rs. 600

No. of shares Salman bought =

600/7.50

=80

Premium on 1 share =

20/100

×50= Rs. 10

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

Total investment for 80 shares =80×60= Rs. 4,800.

Rate of return =

600/4800

×100=12.5%.

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Answered by queensp73
0

Answer:

Total investment for 80 shares =80×60= Rs. 4,800.

Rate of return =

600/4800

×100=12.5%.

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