NumericalEasy1 mark
5(b)
A man invests ₹22,500 in ₹50 shares available at 10% discount. If the dividend paid by the company is 12%, calculate:
The number of shares purchased
Topic: Shares, dividend and return
Previous-year question practice database
Answer
Exam answer
Nominal value = ₹50. Shares are available at 10% discount.
Market value per share = 50 × 90/100 = ₹45.
Investment = ₹22,500.
Number of shares = 22,500/45 = 500.
Answer: 500 shares.
Explanation
The investment is divided by the discounted market price per share.
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