CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
1
You visited us 1 times! Enjoying our articles? Unlock Full Access!
Question

A man invests Rs 1,680 in buying shares of nominal value Rs 24 and selling at 12% premium. The devidend on the shares is 15% per annum. Calculate :

(i) the number of shares he buys;

(ii) the dividend he receives annually.

Open in App
Solution

(i)Nominal value of 1 share = Rs. 24
Market value of 1 share= Rs24 + 12% of Rs. 24
= Rs. 24 + Rs. 2.88 = Rs. 26.88
Total investment = Rs 1,680
∴ No of shares purchased = fraction numerator 1680 over denominator 26.88 end fraction = 62.5
(ii)Nominal value of 62.5 shares = 62.5 × 24 = Rs. 1,500
Dividend = 15% of Rs. 1,500 = Rs. 225


flag
Suggest Corrections
thumbs-up
31
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Shares
MATHEMATICS
Watch in App
Join BYJU'S Learning Program
CrossIcon