Question

Salman buys 50 shares of face value Rs 100 available at Rs 132. Then which of the following is/are correct if dividend is 7.5%.

• A. Total investment = Rs 5000 and annula income = Rs 375
• B. Total investment = Rs 5000 and annual income = Rs 495
• C. Total investment = Rs 6600 & annual income = Rs 375
• D. Total investment = Rs 6600 & annual income = Rs 495

Answer 1

The correct option is C

Total investment = Rs 6600 & annual income = Rs 375

No. of shares = 50

N.V = Rs 100

M.V = Rs 132

Total investment = No. of shares $\times$ M.V

= 50 $\times$ 132 = Rs 6600

Annual income = No. of shares $\times$ Dividend % $\times$ N.V

$=50\times \frac{7.5}{100}\times 100=Rs.375$