Question

Ashok invested $₹26400$ on $12\%$,$₹25$ shares of a company. If he receives a dividend of $₹2475$, find the
(i) number of shares he bought.
(ii) market value of each share.

Answer 1

Step 1: Given Data:

Investment$=₹26400$

Face value$=₹25$

Dividend value$=₹2475$

Rate of dividend$=12\%$

Step 2: Calculate the number of shares purchased:

(i) $Dividend\mathit{}\mathit{=}\mathit{}Number\mathit{}of\mathit{}shares\mathit{\times }\frac{\mathit{R}\mathit{a}\mathit{t}\mathit{e}\mathit{}\mathit{o}\mathit{f}\mathit{}\mathit{d}\mathit{i}\mathit{v}\mathit{i}\mathit{d}\mathit{e}\mathit{n}\mathit{d}}{\mathit{100}}\mathit{\times }Face\mathit{}value$

∴ $\mathit{N}\mathit{u}\mathit{m}\mathit{b}\mathit{e}\mathit{r}\mathit{}\mathit{o}\mathit{f}\mathit{}\mathit{s}\mathit{h}\mathit{a}\mathit{r}\mathit{e}\mathit{s}=\frac{\mathit{D}\mathit{i}\mathit{v}\mathit{i}\mathit{d}\mathit{e}\mathit{n}\mathit{d}\mathbf{\times }\mathit{100}}{\mathit{R}\mathit{a}\mathit{t}\mathit{e}\mathit{}\mathit{o}\mathit{f}\mathit{}\mathit{d}\mathit{i}\mathit{v}\mathit{i}\mathit{d}\mathit{e}\mathit{n}\mathit{d}\mathit{\times }\mathit{F}\mathit{a}\mathit{c}\mathit{e}\mathit{}\mathit{v}\mathit{a}\mathit{l}\mathit{u}\mathit{e}}$

$$\begin{gathered} =\frac{2475\times 100}{{\displaystyle 12}\times 25} \\ =825\mathrm{shares} \end{gathered}$$

Step 3: Calculate the market value of the share:

(ii) $\mathit{M}\mathit{a}\mathit{r}\mathit{k}\mathit{e}\mathit{t}\mathbf{}\mathit{v}\mathit{a}\mathit{l}\mathit{u}\mathit{e}=\frac{\mathit{T}\mathit{o}\mathit{t}\mathit{a}\mathit{l}\mathit{}\mathit{i}\mathit{n}\mathit{v}\mathit{e}\mathit{s}\mathit{t}\mathit{m}\mathit{e}\mathit{n}\mathit{t}}{\mathit{N}\mathit{u}\mathit{m}\mathit{b}\mathit{e}\mathit{r}\mathbf{}\mathit{o}\mathit{f}\mathbf{}\mathit{s}\mathit{h}\mathit{a}\mathit{r}\mathit{e}\mathit{s}}$

$$\begin{gathered} =\frac{26400}{825} \\ =₹32 \end{gathered}$$

Final Answer:

(i) The number of shares purchased is $\mathbf{825}$ shares.

(ii) The market value at which Ashok bought shares is $\mathbf{₹}\mathbf{}\mathbf{32}$.