Question

A man invests Rs. $9,600$ on Rs. $100$ share at Rs. $80$. If the company pays him $18\%$ dividend find:
(i) the number of shares he buys.
(ii) his total dividend
(iii) his percentage return on the shares.

Answer 1

$\left(i\right)\text{Number of shares}=\frac{\text{investment}}{\text{price per share}}=\frac{9600}{80}=120$

$\left(ii\right)\text{Total dividend}=18\%\text{of N.V}\times \text{no. of shares}=\frac{18}{100}\times 100\times 120=2160$

$\left(i\right)\text{Percentage return}=\frac{\text{Total Dividend}}{\text{Total Investment}}\times 100=\frac{2160}{9600}\times 100=22.5\%$