Same chapter4 marksDifficulty: Hard
A man buys 1,000 shares of nominal value ₹10 at a discount of 20% and the company pays a dividend of 6%. Find his percentage return.
Shares and Dividends
4 marksDifficulty: Hard
An investor can buy ₹100 shares of company A at ₹125 paying a dividend of 20%, or ₹100 shares of company B at ₹80 paying a dividend of 12%. Which is the better investment, and why?
Original Khojo Papers practice question — not from a past board paper.
Answer
Company A, because it returns 16% against company B's 15%.
No citable source has been recorded for this record. Treat it as practice material, not as fact.
Explanation
For A the income per share is ₹20 on an outlay of ₹125, a return of 16%. For B the income per share is ₹12 on an outlay of ₹80, a return of 15%. The higher dividend rate alone does not settle it; what matters is income against the price actually paid.
Related questions
From the same topic and chapter, at a similar level.
Same chapter4 marksDifficulty: Hard
A man invests ₹9,000 in ₹100 shares at ₹90 and, after receiving one dividend of 12%, sells them all at ₹110. Find (i) the dividend received and (ii) the profit made on the sale.
Shares and Dividends
Same chapter4 marksDifficulty: Hard
A man invests ₹25,000 in ₹100 shares at ₹125 and receives a dividend of 20%. Find his income and his percentage return.
Shares and Dividends
Same chapter4 marksDifficulty: Hard
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Shares and Dividends
Same chapter4 marksDifficulty: Medium
A man invests ₹19,200 in ₹100 shares available at ₹120. If the company declares a dividend of 15%, find the number of shares bought, his annual income and his percentage return.
Shares and Dividends
Same chapter4 marksDifficulty: Medium
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Shares and Dividends