Smt Gupta purchased the following shares. Find her tota
investment
Company A : 210 shares; FV 100; at discount * 3.
Company B : 3500 shares; FV 10; MV * 18.50
What amount did she receive on total investment, if the rate of
return is 9%?
Answers
Answered by
6
Step-by-step explanation:
Investment in Company A
= No of shares × M.V.
(M.V. = F.V. - Discount)
= 210 × (100 - 3)
= 210 × 97
= *20,370
Investment in Company B
= No of shares × M.V.
= 3500 × 18.503
= *64,750
Rate of Return = dividend income / sum invested ×100
For company A,
9 = dividend income / 20,370 × 100
hence
dividend income from company A = *1,833.3
For company B,
9 = dividend income/ 64,750 ×100
hence
dividend income from company B= *5,827.5
Total amount recieved = 1,833.3 + 5,827.5
= *7,660.8
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