Question

Salman invests a sum of money in Rs. $50$ shares, paying $15\%$ dividend quoted at $20\%$ premium. If his annual dividend is Rs. $600$, calculate the number of shares he bought

Answer 1

Nominal value of $1$ share $=$ Rs. $50$
Dividend on $1$ share $=\frac{15}{100}\times 50=$ Rs. $7.50$
Total Dividend of Salman $=$ Rs. $600$
No. of shares Salman bought $=\frac{600}{7.50}=80$