Question

Ashok invested Rs 26,400 on 12%, Rs 25 shares of a company. If he receives a dividend of Rs 2,475, find the :
i) Number of shares he bought
ii) Market value of each share
[3 MARKS]

Answer 1

Each subpart: 1.5 Marks each

Investment = Rs 26,400
D% = 12%
NV = Rs 25
Annual dividend (AD) = Rs 2,475
(i) $AD=\frac{D}{100}\times NV\times No.$ of shares
$\Rightarrow 2475=\frac{12}{100}\times 25\times x$
$\Rightarrow x=\frac{2475}{3}$
So, no. of shares = 825
(ii) $MV=\frac{Investment}{No.ofshares}=\frac{26,400}{825}=Rs32$
MV = Rs 32