1.

How much should a man invest in 50 shares selling at 60 to obtain an income of 450, if the rate of dividend declared is 10%. Also, find his yield percent, to the nearest whole number.

Answer»

Market value of a share = Rs 60 

Face value of a share = Rs 50 

Rate of dividend = 10% 

Total income = Rs 450 

If income is 5, then investment = Rs 60 

If income is 1, then investment = 60/5 = Rs 12 

If income is 450, then investment = Rs 12 × 450 = Rs 5400 

Thus, total investment is Rs 5480 

∴ Yield percent = (450/5400) × 100 = 8.33 

= 8 (to the nearest whole number)



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