percentage return on his money.

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Solution

No of shares=400
Nominal value=Rs.20
Premium=Rs.4
$∴$ Market value of 1 share $= 20 + 4 = R s .24$
$\Rightarrow$ Market value of 400 shares= $400 \times 24 = R s .9600$

Annual income =No.of shares $\times$ rate of div. $\times$ N.V of 1 share
$\Rightarrow 400 \times \frac{12}{100} \times 20$
$\Rightarrow R s .960$
% $R e t u r n = \frac{I n c o m e}{I n v e s t m e n t} \times 100$ %
$\Rightarrow \frac{960}{9600} \times 100 = 10$ %

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Similar questions

A man buys 400, twenty-rupee shares at a premium of Rs 4 each and receives a dividend of 12%. Find :

(i) the amount invested by him.

(ii) his total income from the shares.

(iii) percentage return on his money.

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