Question

Mr. Tiwari invested Rs 29,040 in 15% Rs 100 shares quoted at a premium of 20% . Calculate:

(i) the number of shares bought by Mr. Tiwari.

(ii) Mr. Tiwari's income from the investment.

(iii) the percentage return on his investment.

Answer 1

i) no. of shares = investment

M.V

= 29040

100+20

= 29040

120

= 242 shares

ii) Dividend = N.V x no. of shares x R

100

= 100 x 242 x 15

100

= Rs. 3630

iii) %return = dividend x 100

investment

= 3630 x 100

29040

= 100

8

= 12.5%.