wiz-icon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

A dividend of 13 % was declared on ₹ 100 shares selling at a certain price. If the rate of return is 6.5 % ,calculate

(i) the market value of the shares

(ii) the amount to be invested to obtain an annual dividend of ₹ 3900


A

i) ₹ 200 (ii) ₹ 60,000

Right on! Give the BNAT exam to get a 100% scholarship for BYJUS courses
B

i) ₹ 100 (ii) ₹ 30,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!
C

i) ₹ 150 (ii) ₹ 40,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!
D

i) ₹ 500 (ii) ₹ 50,000

No worries! We‘ve got your back. Try BYJU‘S free classes today!
Open in App
Solution

The correct option is A

i) ₹ 200 (ii) ₹ 60,000


Given that Dividend = 13 % ; N.V = ₹ 100; Rate of return = 6.5 %

M.V x Rate of Return = Dividend % x N.V

M.V × 6. 5 % = 13 % × 100
M.V × 6.5100 = 13100 × 100
M.V = 136.5 × 100
= ₹ 200

ii) Dividend % = 13 % ; N.V = 100
Hence dividend on one share = ₹ 13

To obtain an annual income of ₹ 3900;
We know Annual Income = Dividend on one share x Number of shares
3900 = 13 x Number of shares
Number of shares = 650013
= 300

M.V of one share = ₹ 200 and number of shares = 300
Hence he will have to invest 200 x 300 = ₹ 60,000


flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Shares
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon