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A man bought Rs. 40 shares at a discount of 40%. Find his income, if he invests Rs. 12,000 in these shares and receives a dividend at the rate of 11% on the face value of the shares. |
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Answer» Solution 2: Total investment = Rs.12,000 Nominal value of 1 share = Rs.40 Market value of 1 share = Rs. 40 − 40% of Rs. 40 = Rs. 40 – Rs. 16 = Rs. 24 ∴ No of shares purchased = 12,000/24 = 500 shares Nominal value of 500 shares = Rs. 40 × 500 = Rs. 20,000 Dividend % = 11% Dividend = 11% of Rs. 20,000 = (11/100) × 20,000= Rs. 2,200 |
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