Question

Rakesh invested Rs 43,920 to buy shares of a company whose market value is Rs 122 each. The face value of a share is Rs 100.
(i) Find the number of shares purchased.
(ii) Also, find his yearly dividend, if the dividend is $10\%$ per annum.
[4 MARKS]

Answer 1

Each subpart: 2 Marks each

(i) Investment = Rs 43,920
Market value of each share = Rs 122
No. of shares purchased = $\frac{43920}{122}=360$

(ii) Given that
the dividend is $10\%$ per annum.
Face value of the share = Rs 100
So, yearly dividend = $10\%of(Numberofshares\times Facevalueofeachshare)=\frac{10}{100}\times 360\times 100=Rs3600$