A man invested Rs. 14,400 in Rs 100 shares of a company at 20% premium. If the company declares 5% dividend at the end of the year, then how much does he get?
Q1. A man invested Rs. 14,400 in Rs 100 shares of a company at 20% premium. If the company declares 5% dividend at the end of the year, then how much does he get?
Answer: Rs. 600
Explanation: Investment Rs. 14,400 at 20% premium means buying price = Rs. 120 per share; number of shares = 14400/120 = 120; dividend at 5% on face value (Rs. 100) = Rs. 5 per share; total = 120 × 5 = Rs. 600.