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A man bought Rs. 40 shares at a premium of 40%. Find his income, if he invests Rs. 14,000 in these shares and receives a dividend at the rate of 8% on the face value of the shares. |
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Answer» Total investment = Rs. 14,000 Nominal value of 1 share = Rs. 40 Market value of 1 share = Rs. 40 + 40% of Rs. 40 = Rs. 40 + Rs. 16 = Rs. 56 ∴ No of shares purchased = 14,000/ 56 = 250 shares Nominal value of 250 shares = Rs. 40 × 250 = Rs. 10,000 Dividend% = 8% Dividend = 8% of Rs. 10,000 = (8/100) ×10,000 =Rs. 800 |
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