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    Question

    A man buys 80 shares of ₹100 each at ₹120 and

    receives a dividend of 12% at the end of the year. Find: (i) his total income from dividends, and (ii) his yield (percentage return) on investment.
    A ₹520 and 25% Correct Answer Incorrect Answer
    B ₹900 and 18% Correct Answer Incorrect Answer
    C ₹960 and 10% Correct Answer Incorrect Answer
    D ₹1060 and 15% Correct Answer Incorrect Answer

    Solution

    ATQ,

    Face value of one share = ₹100 Dividend = 12% of ₹100 = ₹12 per share (a) Total income: = 80 × ₹12 = ₹960 (b) Investment: = 80 × ₹120 = ₹9600 Yield % = (Income / Investment) × 100 = (960 / 9600) × 100 = 10% Final Answers: (a) Dividend income = ₹960 (b) Yield = 10%

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