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    				| 1. | 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 | 
| 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% | |