the price of rs 10 share of a company rs 13 and the company declares dividend of 12% Find (a)how many shares can be purchased for rs 2,600; (b)The dividend; (c) the rate of interest and investment?
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Answer:Face value of one share=Rs10
Market value of one share=Rs,13
Rate of dividend per share =12%
Investment=Rs2600
A) number of shares purchased
=Investment/ market value of a share
=2600/13=200
200 shares are purchased
B)dividend earned= numbers of shares purchased x rate of dividend per share x face value
=200x 12x10/100=24000/100=Rs240
Dividend income=Rs.240
C) rate of interest on the investment
=Dividend income x100/investment
=240*100/2600
=240/26
=9.23%
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