Question

How much should a man invest in ₹120 shares selling at ₹90 to obtain an annual income of ₹1260 which pays 15% dividend?

• A. ₹6200
• B. ₹6500
• C. ₹6300
• D. ₹6700

Answer 1

The correct option is C ₹6300

Dividend on 1 share = 15% of 120 $=\frac{15}{100}\times 120=₹18$

Number of share bought $=\frac{\text{Total Dividend}}{\text{Dividend on 1 share}}$ $=\frac{₹1260}{₹18}=70$

Hence, the sum invested by man = No of shares bought $\times$ M.V of each share
$\Rightarrow$ Sum invested $=70\times 90=₹6300$.