1.

Ahmad invested rupees 11000 and purchased 100 shares of a face value rupees hundred each how much above par is the market value of each share. If the dividend per share is Rs 75 find his income from the shares.

Answer» INVESTMENT- 11000
n(shares)-100
Nominal Value (N.V)-100
Dividend (d)-75 per share
i = m.v \times n \\ 11000 = m.v \times 100 \\ m.v = 110 \\
therefore the market value is rupees 110
(100 - 110) = 10
And it is 10 rupees above PAR as shown above.
Let d% be X.
his \: income \: from \: the \: shares \: is \: \\ d = \binom{d\%}{100} \times m.v \: \times n \\ 75 = \binom{x}{100} \times 110 \times 100 \\ 75 = \binom{x}{100} \times 11000 \\75 = x \times 110 \\ 75 \div 110 = x \\ x = 0.68\%


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