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Amit owns 1500, rs 25 shares of a company which declares a dividend of 14% . He sells the shares at rs 40 each and invests the proceeds in 8%, rs 100 shares at rs 80. What is the change in his annual dividend income ? |
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Answer» Given : Amit owns 1500, rs 25 shares of a COMPANY which declares a dividend of 14% . He sells the shares at rs 40 each and invests the proceeds in 8%, rs 100 shares at rs 80 To FIND : change in his annual dividend income Solution: Shares 1500 Share FV = Rs 25 Dividend = 14% annual Dividend = number of shares * ( dividend % /100) * FV = 1500 * (14/100) * 25 = Rs 5250 Shares SOLD for = 1500 * 40 = Rs 60000 Shares Bought = 60000/80 = 750 Dividend per share = (8/100) 100 = Rs 8 Annual Dividend = 750 * 8 = Rs 6000 Change in his annual Dividend income = 6000 - 5250 = Rs 750 Rs 750 increase in annual Dividend income Learn More: what is the rate of dividend, if dividend of 24 rupees is received on 3 ... What is the amount of dividend received per share of face value ... Amit BOL 24 shares of fv 100 by investing 3000 8% dividend was ... |
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