What some should Ashok invest in RS 25 shares selling at RS 36 to obtain and income of RS 720 if the dividend declared by the company is 12% also find:
1. The number of shares bought by Ashok
2. The percentage return on his income

Open in App

Solution

Nominal value(N.V.)=₹ 25Market Value(M.V.)=₹ 36Dividend(D)=12%Annual income=₹720Let number of shares bought be xAnnual income=D×NV×Number of shares⇒720=12100×25× x⇒x=7200025×12=240Hence 240 shares are bought.Also x=Investment(I)M.V.⇒240=I36⇒I=₹ 8640Hence person should invest ₹ 8640.%Rate of Income=(Annual IncomeInvestment×100)%=(7208640×100)%=8.33%Hence %return or %rate of Income is 8.33%.

Suggest Corrections

Similar questions

12 %

Nirav invests in 12%, Rs 25 shares of a company quoted at Rs 36. His income from his investment is Rs 720.Calculate:

i) The total amount of money invested by him in these shares.

ii) The number of shares bought by him.

iii) The percentage return on his investment.

50

60

450

10 %

R s .100

R s . 110

R s . 1, 680

12 %

Join BYJU'S Learning Program