A man buys 400, twenty-rupee shares at a premium of Rs. 4 each and receives a dividend of 12%. Find:
(i) The amount invested by him.
(ii) His total income from the shares.
(iii) Percentage return on his money.
Nominal value of 1 share = Rs. 20
Market value of 1 share = Rs. 20 + Rs. 4 = Rs. 24
No. of shares purchased = 400
Nominal value of 400 shares = 400 × 20 = Rs. 8,000
(i) Market value of 400 shares= 400 × 24 = Rs. 9,600
