A man invests ₹22,500 in ₹50 shares available at 10% discount

Commercial Mathematics (10)

A man invests ₹22,500 in ₹50 shares available at 10% discount. If the dividend paid by the company is 12%, calculate:

1. The number of shares purchased
2. The annual dividend received.
3. The rate of return he gets on his investment. Give your answer correct to the nearest whole number.

Answer

$NV = 50%$

${MV= 50 – 10\% of 50} =  45$

i. $ \text{Number  of  shares} = \frac{22500}{45} = 500$

ii. $ \text{Annual dividend} = \frac{12 \times 50 \times 500}{100} = 3000$

ii. $\text{Yield%} = \frac{3000}{22500}\times 100$ = 13.333% ≈ 13%