Use app×
Join Bloom Tuition
One on One Online Tuition
JEE MAIN 2025 Foundation Course
NEET 2025 Foundation Course
CLASS 12 FOUNDATION COURSE
CLASS 10 FOUNDATION COURSE
CLASS 9 FOUNDATION COURSE
CLASS 8 FOUNDATION COURSE
0 votes
757 views
in Financial Mathematics by (47.8k points)
closed by

A man buys 400 of Rs 10 shares at a premium of Rs 2.50 on each share. If the rate of dividend is 12% find

(i) his investment 

(ii) annual dividend received by him

(iii) rate of interest received by him on his money

1 Answer

+1 vote
by (47.4k points)
selected by
 
Best answer

(i) Given Number of shares = 400 

Face value of a share Rs 10 market values of a share 

= 10 + 2.50 = Rs 12.50 

Investment = Number of shares x Market value of a share 

= Rs 400 x 12.50 = Rs 5000

(ii) Annual dividend = Number of shares x Face value x Rate of dividend 

= 400 x 10 x \(\frac{12}{100}\)

= Rs 480

(iii) Rate of dividend = \(\frac{Dividend}{Investment}\) x 100 

= \(\frac{480}{5000}\) x 100 

\(\frac{48}{5}\) 

= 9.6%

Welcome to Sarthaks eConnect: A unique platform where students can interact with teachers/experts/students to get solutions to their queries. Students (upto class 10+2) preparing for All Government Exams, CBSE Board Exam, ICSE Board Exam, State Board Exam, JEE (Mains+Advance) and NEET can ask questions from any subject and get quick answers by subject teachers/ experts/mentors/students.

...