Question

Swapnil invests ₹14950 in ₹100 shares of a company, paying $14\%$ dividend. If her annual income from shares be ₹1610, what will be the market value of each share?

• A. ₹130
• B. ₹145
• C. ₹150
• D. ₹120

Answer 1

The correct option is A

₹130

Total annual income = ₹1610

Annual income from 1 share = $14\%$ of ₹ 100 = ₹14

Number of shares bought by swapnil = $\frac{\text{Total annual income}}{\text{Income from 1 share}}=\frac{1610}{14}=115$

Market value of each share = $\frac{\text{Total investment in all the shares}}{\text{Number of shares bought}}$

= $\frac{14950}{115}$ = ₹130

Hence, the market value of each share is ₹130.