Mr. weasley had 400 shares of a company of face value ₹10 each. The co...
Solution:
Given data:
Number of shares of the first company = 400
Face value of each share of the first company = ₹10
Dividend rate of the first company = 8%
Market price of each share of the first company = ₹60
Market price of each share of the second company = ₹200
Face value of each share of the second company = ₹100
Dividend rate of the second company = 5%
Calculation of market value of shares of the first company:
Market value of each share of the first company = ₹60
Therefore, market value of 400 shares of the first company = ₹60 * 400 = ₹24,000
Calculation of dividend received from the first company:
Dividend rate of the first company = 8%
Dividend received per share of the first company = 8% of ₹10 = ₹0.8
Therefore, dividend received from 400 shares of the first company = 400 * ₹0.8 = ₹320
Calculation of funds available for investment in the second company:
Proceeds from the sale of shares of the first company = ₹24,000
Therefore, funds available for investment in the second company = ₹24,000
Calculation of number of shares of the second company purchased:
Market price of each share of the second company = ₹200
Therefore, number of shares of the second company purchased = ₹24,000 / ₹200 = 120
Calculation of dividend received from the second company:
Dividend rate of the second company = 5%
Dividend received per share of the second company = 5% of ₹100 = ₹5
Therefore, dividend received from 120 shares of the second company = 120 * ₹5 = ₹600
Final answer:
Number of shares of the second company purchased = 120
Total dividend received = ₹320 + ₹600 = ₹920
Mr. weasley had 400 shares of a company of face value ₹10 each. The co...
Plzz answer this question.? with method?