Mr. Amit invested Rs.52000 on Rs.100 shares of a discount of Rs.20 paying 8% dividend at the end of one year he sells the shares at a premium of Rs. 20. Find:
(i) Annual dividend
(ii) Profit earned including his dividend

Asked by AMIT | 10th Apr, 2017, 05:57: PM

Expert Answer:

begin mathsize 14px style Market space value space of space one space share equals Rs. space left parenthesis 100 minus 20 right parenthesis equals Rs. space 80
Investment equals Rs. space 52000
rightwards double arrow Number space of space shares space bought equals 52000 over 80 equals 650
left parenthesis straight i right parenthesis space Annual space dividend equals Number space of space shares cross times Rste space of space dividend cross times face space value space of space one space share
equals 650 cross times 8 over 100 cross times 100
equals Rs. space 5200

left parenthesis ii right parenthesis space As space Mr. space Amit space sells space his space ahres space at space straight a space premium space of space Rs. space 20 comma
the space market space value space of space one space share equals Rs. space left parenthesis 100 plus 20 right parenthesis equals Rs. space 120
rightwards double arrow The space selling space value space of space his space 650 space shares equals Rs. space left parenthesis 120 cross times 650 right parenthesis equals Rs. space 78 comma 000
rightwards double arrow Profit space earned space including space his space dividend equals selling space value plus dividend minus investment
equals Rs. space left parenthesis 78000 plus 5200 minus 52000 right parenthesis
equals Rs. space 31200
end style

Answered by Rashmi Khot | 11th Apr, 2017, 09:48: AM