A lady holds $1800$ , $R s . 100$ shares of a company that pays $15 %$ dividend annually. Calculate her annual dividend. If she had bought these shares at $40 %$ premium, what is the return she gets as percent on her investment.

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Solution

No of shares $= 1800$
Rate of div $= 15$ %
$\Rightarrow$ The yearly dividend on 1 share=15% of Rs.100 $= \frac{15}{100} \times 100 = R s .15$
$∴$ Annual dividend paid by the company $= 1800 \times 15 = R s .27000$

Premium $= 40$ %
$∴$ market value of 1 share $= 100 + 40 = R s .140$
$\Rightarrow$ Market value of 1800 shares= $1800 \times 140 = R s .252000$
Annual income $= 1800 \times \frac{15}{100} \times 100 = R s .27000$
% Return= $\frac{i n c o m e}{i n v e s t m e n t} \times 100$
$\Rightarrow \frac{27000}{252000} \times 100 = 10.71 = 11$ %

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A lady holds 1800, Rs. 100 shares of a company that pays 15% dividend annually. Calculate her annual dividend. If she had bought these shares at 40% premium, what is the return she gets as percent on her investment.

A lady holds $1800$ , $R s . 100$ shares of a company that pays $15 %$ dividend annually. Calculate her annual dividend. If she had bought these shares at $40 %$ premium, what is the return she gets as percent on her investment.