QQuestion
Mr Gupta invested ₹33,000 in buying ₹100 shares of a company at 10% premium. The dividend declared by the company is 12%.
Find:
(a) the number of shares purchased by him.
(b) his annual dividend.
ICSEClass 10MathematicsShares And Dividends03 Mark2024 Moderate
✓Answer
Money invested = ₹33,000
Nominal value of each share = ₹100
Premium = 10%
Premium on each share = \frac{10}{100} × ₹100
⇒ Premium on each share = ₹10
Market value of each share = Nominal value + Premium
⇒ Market value = ₹100 + ₹10
⇒ Market value = ₹110
(a) Number of shares = Money invested/Market value per share
⇒ Number of shares = \frac{33000}{110}
⇒ Number of shares = 300
(b) Dividend on one share = \frac{12}{100} × ₹100
⇒ Dividend on one share = ₹12
Annual dividend = 300 × ₹12
⇒ Annual dividend = ₹3,600
Therefore, 300 shares were purchased and the annual dividend is ₹3,600.
Was this answer helpful?
Related Questions
More ICSE Moderate level questions
1/12
A man bought ₹200 shares of a company at 25% premium. He received a return of 5% on his investment. Find: (a) the market value of one share. (b) the dividend percentage declared. (c) the number of shares purchased if the annual dividend is ₹1,000.
A man invested in a company paying 12% dividend on its shares. If the percentage return on his investment is 10%, then the shares are: (a) at par (b) below par (c) above par (d) cannot be determined
The sum invested to purchase 15 shares of nominal value ₹75 each at a discount of 20% is: (a) ₹60 (b) ₹90 (c) ₹1350 (d) ₹900
Kabir bought 120 shares of a company with nominal value ₹100, available at a premium of ₹25. Find: (a) the money invested by Kabir in buying these shares. (b) the rate of dividend, if he received ₹1,080 as dividend from these shares after one year. (c) his rate of return.
Asha buys ₹ 20 shares of a company which pays 9% dividend at such a price that she gets a return of 12% on her investment. At what price did she buy each share? (a) ₹ 20 (b) ₹ 15 (c) ₹ 25 (d) ₹ 18
Solve the following quadratic equation for x and give your answers correct to three significant figures: 2x² − 10x + 5 = 0
The letters A, D, M, N, O, S, U and Y of the English alphabet are written on separate cards and put in a box. The cards are well shuffled and one card is drawn at random. What is the probability that the card drawn is a letter: (a) of the word MONDAY? (b) which does not appear in MONDAY? (c) which appears both in SUNDAY and MONDAY?
The figure shows a circle of radius 9 cm with O as the centre. The diameter AB produced meets the tangent PQ at P. If PA = 24 cm, find the length of tangent PQ.
In the given diagram, an isosceles △ABC is inscribed in a circle with centre O. PQ is a tangent to the circle at C. OM is perpendicular to chord AC and ∠COM = 65°. Find: (a) ∠ABC (b) ∠BAC (c) ∠BCQ
The polynomial 3x³ + 8x² − 15x + k has (x − 1) as a factor. Find the value of k. Hence, factorize the resulting polynomial completely.
The nth term of an Arithmetic Progression (A.P.) is given by the relation Tn = 6(7 − n). Find: (a) its first term and common difference. (b) the sum of its first 25 terms.
Solve the following inequation, write down the solution set and represent it on the real number line: −3 + x ≤ + 2 < 8 + 2x, x ∈ I.