I. A company declares 8% dividend to the share holders. If a man receives Rs. 2840 as his dividend, find the nominal value of his shares.

 

II.Mr. Gupta has a choice to invest in two firms of each Nominal value Rs. 10, one at Rs.13 and other at Rs.16. If the first firm pays 5% dividend and the second pays 6% dividend per annum, find how much does Mr. Gupta invests in all,if he invests equally in both the firms and the difference between the returns from them is Rs.30

 

 

 

Asked by  | 28th Apr, 2014, 12:01: AM

Expert Answer:

L e t space t h e space n o m i n a l space v a l u e space i s space P comma space t h e n  fraction numerator P cross times 8 over denominator 100 end fraction equals 2840  rightwards double arrow P equals 35 comma 500 space R s
 
2)
 
L e t space M r. space G u p t a space i n v e s t space e q u a l space a m o u n t space o f space P space i n space b o t h space o f space t h e space c o m p a n i e s comma space t h e n  P cross times 10 cross times 6 over 100 minus P cross times 10 cross times 5 over 100 equals 30  rightwards double arrow P open square brackets 60 over 100 minus 50 over 100 close square brackets equals 30  rightwards double arrow P equals 300 space R s  M r. space G u p t a space m u s t space i n v e s t space R s space 300 space i n space b o t h space o f space t h e space c o m p a n i e s.

Answered by  | 30th Apr, 2014, 09:47: AM

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