Question

How much should a man invest in INR $80$ shares selling at INR $75$ to obtain an annual income of INR $1080$, if the dividend declared is $15\%$.

Answer 1

$\Rightarrow$ Nominal value of $1$ share $=Rs.80$

$\Rightarrow$ Market value of $1$ share $=Rs.75$

Let`number of shares purchased be $n.$

Then nominal value of $n$ shares $=Rs\left(80n\right)$

$\Rightarrow$ Dividend $\%=15\%$

$\Rightarrow$ Dividend $=Rs.1080$

$\therefore$ $15\%$ of $80n=Rs.1080$

$\Rightarrow$ $\frac{15}{100}\times 80n=Rs.1080$

$\Rightarrow$ $n=\frac{1080\times 100}{15\times 80}$

$\Rightarrow$ $n=90$

$\Rightarrow$ The market value of $90$ shares $=90\times 75=Rs.6750$