How much should a man invest in ₹ 50 shares selling at premium of ₹ 60 to obtain an income of ₹ 1500, if the dividend % is 20

₹ 5000

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₹ 8500

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₹ 15000

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₹ 9000

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Solution

The correct option is D
₹ 9000

Dividend on 1 share of ₹ 50 = 20 % of 50 = $\frac{20}{100}$ $\times$ 50 = ₹ 10

Annual Income = ₹ 1500

Number of shares bought = $\frac{Annual Income}{Dividend on one share}$ = $\frac{1500}{10}$ = 150

Given that Market Value of each share = ₹ 60

The Sum invested by the man = 150 x ₹ 60 = ₹ 9000

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