Question

Manikanta bought 100 shares whose nominal value is ₹ 20 and the market value is ₹ 10. He gets a dividend of 8% on it , then his annual income is

• A. ₹ 160
• B. ₹ 100
• C. ₹ 80

Answer 1

The correct option is A ₹ 160

Annual income =(Number of shares) $\times$ (Nominal Value of shares) $\times$ (Rate of dividend)
Given, no.of shares = 100
Rate of dividend = 8%
Nominal Value = ₹ 20

$\Rightarrow \text{Annual income}=100\times 20\times \left(\frac{8}{100}\right)$
= ₹ 160