Read Mode
Stocks And Shares
Find the income derived from 88 shares of Rs. 25 each at a premium of Rs. 5, brokerage being Rs. 0.25 per share, and the rate of dividend being 7.5% per annum.
Explanation and memory cue
The total cost per share is Rs. 25 face value + Rs. 5 premium + Rs. 0.25 brokerage = Rs. 30.25. The dividend is 7.5% on the face value of Rs. 25, which is Rs. 1.875 per share. For 88 shares, income = 88 × 1.875 = Rs. 165.