Ashok invests in Rs 25 shares selling at Rs 36 and obtaining an income of RS 7220. If the company declared dividend of 12%, find the number of shares bough by Ashok. Also find his investment.
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : ₹8640
Dividend on 1 share of $₹25= ₹\left(\frac{2}{100}×25\right)$
∴ No. of shares $=\frac{Total\, income}{\text{Dividend earned by 1 share}}$
$=\frac{₹720}{₹3}=₹240$
Ashok's investment $=₹(240×36)$
$=₹8640$