A company with 8000 shares of nominal value Rs 80 declares an annual income of 10% to the share holders. (i) Calculate the annual income. (ii) A man had brought 80 shares of the company at Rs 140 per share. Calculate the dividend% he receives and % return on his investment.

Asked by mn121 | 10th Nov, 2019, 11:28: PM

Expert Answer:

For company
No. of shares = 8000
N.V. = Rs. 80
D% = 10%
D = (10/100)×80 = 8 Rs.
Total income = 8×8000 = 64,000
 
For man
No. of shares = 80
M.V. = Rs. 140
Total invesment = Rs. 11,200
Total income = 8×80 = 640
% return = (640/11200)×100 = 5.71%

Answered by Arun | 14th Nov, 2019, 01:58: PM