4 lady holds 1800, Rs 100 shares of a company that pays 15% dividend annually. Calculate her annual dividend, if she had bought these shares at 40% premium, find her investment.
Answer & explanation
Correct answer: option 2
The correct answer is option (2) : ₹25200
Dividend on 1 share of ₹100= ₹15
Dividend on ₹ 1800 shares of ₹1800 shares of $₹100 = ₹ (1800 × 15)$
$=₹27000$
She bought one share at 40% premium
i..e at ₹ 140
∴ Her investment =$₹(1800×140)= ₹25200$