Question

Manikanta invested ₹1000 in an oil company. The nominal value of the share is ₹9 and the market value is ₹10. The company is paying 8% dividend per annum. The number of shares bought by him and his income from the investment are respectively ____.

• A. 100, ₹48
• B. 100, ₹50
• C. 100, ₹60
• D. 100, ₹72

Answer 1

The correct option is D

100, ₹72

Given that,
Manikanta invested ₹1000.
The market value of the share = ₹10.
No of shares bought by Manikanata is

$\Rightarrow \frac{1000}{10}=100$
His income from investment=(Number of shares) $\times$ (Nominal Value of shares) $\times$ (Rate of dividend)

$\Rightarrow 100\times 9\times \left(\frac{8}{100}\right)=₹72$