1.

A sum of rupees 11,880 is invested in Rs. 50 shares available at 12% discount. Find the income, if a dividend of 12% is given on the shares.

Answer»

Total investment = Rs. 11,880

Nominal value of 1 share = Rs. 50

Market value of 1 share = Rs. 50 − 12% of Rs. 50

= Rs. 50 – Rs. 6 = Rs. 44

∴ No of shares purchased = 11,880/44 = 270 shares

Nominal value of 270 shares = Rs. 50 × 270 = Rs. 13,500

Dividend% = 12%

Dividend = 12% of Rs. 13,500

= (12/100) × 13,500= Rs. 1,620



Discussion

No Comment Found

Related InterviewSolutions