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Shares and Dividends | Shares and Dividends Exercise 3

Question 11

A lady holds 1800, Rs. 100 shares of a company that pays 15% dividend annually.

Calculate her annual dividend. If she had bought these shares at 40% premium, what

percentage return does she get on her investment? Give your answer to the nearest

integer.

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Given total number of shares = 1800

Nominal value of each share = Rs. 100

And rate o dividend = 15%

Total face value of 1800 shares = 100 × 1800

= Rs. 180000

Therefore total dividend = 180000 × 15/100

= Rs. 2700

Therefore market value of each share = 100 + 40 = Rs. 140

Now the total investment = 140 × 1800

= Rs. 252000

Therefore percentage on his return

= (27000 × 100)/ 252000

= 10.7%

In integers 11%

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subject-cta

Question 11

A lady holds 1800, Rs. 100 shares of a company that pays 15% dividend annually.

Calculate her annual dividend. If she had bought these shares at 40% premium, what

percentage return does she get on her investment? Give your answer to the nearest

integer.

Looking to do well in your science exam ? Learn from an expert tutor. Book a free class!

Given total number of shares = 1800

Nominal value of each share = Rs. 100

And rate o dividend = 15%

Total face value of 1800 shares = 100 × 1800

= Rs. 180000

Therefore total dividend = 180000 × 15/100

= Rs. 2700

Therefore market value of each share = 100 + 40 = Rs. 140

Now the total investment = 140 × 1800

= Rs. 252000

Therefore percentage on his return

= (27000 × 100)/ 252000

= 10.7%

In integers 11%

Our top 5% students will be awarded a special scholarship to Lido.

subject-cta
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