| A man invested Rs. 14400 in the 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 as dividend? [FCI (Assistant) Grade III 2015] |
A) Rs. 700
B) Rs. 750
C) Rs. 650
D) Rs. 600
Correct Answer: C
Solution :
| Cost of per share \[=Rs.\left( 100+100\times \frac{20}{100} \right)\] |
| \[=Rs.\,\,(100+20)=Rs.\,120\] |
| \[\therefore \] Total number of shares |
| \[=\frac{\text{Total}\,\text{amount}\,\text{invested}}{\text{Cost}\,\text{of}\,\text{per}\,\text{share}}\] |
| \[=\,\,\frac{14400}{120}=120\] |
| \[\because \] Share cost \[=120\times 100=Rs.\,12000\] |
| \[\therefore \] Dividend amount \[=12000\times \frac{5}{100}=Rs.\,600\] |
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