Sum invested = Rs 8800 Face value = Rs 100 Market value = 10% of Rs 100 + 100 = 10 + 100 = Rs 110 1. Number of shares = sum invested/M.V = 8800/110 = 80
2. Dividend = Number of shares * F.V * rate of dividend/100 Rs 1200 = 80 * 100 * rate of dividend/100 rate of dividend = 1200*100/8000 = 15%
Answers & Comments
Given,
Investment = Rs. 8800
FV = Rs. 100
Premium = 10 %
So,
MV = 100 + 10%100
MV = 100 + 10
MV = Rs. 110
1)--
Number of shares = Investment \ MV on one share
Number of shares =8800 / 110
Number of shares = 80.
2)--
Dividend = Rs. 1200
Annual dividend = (Number of shares × Dividend % × FV) \100
Annual dividend = 80 × Divident % × 100 /100
1200= 80 × Divident %
1200 /80 = Dividend %
Dividend % = 15 %
Verified answer
Sum invested = Rs 8800Face value = Rs 100
Market value = 10% of Rs 100 + 100
= 10 + 100
= Rs 110
1. Number of shares = sum invested/M.V
= 8800/110
= 80
2. Dividend = Number of shares * F.V * rate of dividend/100
Rs 1200 = 80 * 100 * rate of dividend/100
rate of dividend = 1200*100/8000
= 15%