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Mathematics

Ashok invests ₹26400 on 12% ₹25 shares of a company. If he receives a dividend of ₹2475, find:

(i) the number of shares he bought.
(ii) the market value of each share.

Shares & Dividends

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Answer

Let the number of shares purchased be x.

Nominal Value per share = ₹25

Rate of Dividend = 12%

Total Investment = ₹26400

Annual Dividend = ₹2475

Annual Dividend = No. of shares x Rate of Dividend x Nominal Value per share

According to the given,

2475=x×12100×252475=3xx=24753x=8252475 = x \times \dfrac{12}{100} \times 25 \\[0.5em] 2475 = 3x \\[0.5em] x = \dfrac{2475}{3} \\[0.5em] x = 825

∴ Number of shares bought = 825

Market value of each share

=Total InvestmentNo. of shares=26400825=₹32= \dfrac{\text{Total Investment}}{\text{No. of shares}} \\[0.7em] = \dfrac{26400}{825} \\[0.5em] = \bold{₹32}

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