A man buys Rs. 50 shares of a company, paying 12 per cent dividend, at a premium of Rs. 10. Find:
(i) the market value of 320 shares.
(ii) his annual income;
(iii) his profit percent.
Nominal value of 1 share = Rs. 50
Market value of 1 share = Rs. 50 + Rs. 10 = Rs. 60
Market value of 320 shares = 320 × 60 = Rs. 19,200
Nominal value of 320 shares = 320 × 50 = Rs. 16,000
Annual income = 12% of Rs. 16,000
