## Shama has 1000 shares of par value Rs. 10 each of a company and 200 debentures of par value Rs. 100 each. The company pays an

Question

Shama has 1000 shares of par value Rs. 10 each of a company and 200 debentures of par value Rs. 100 each. The company pays an annual dividend of 10% and an interest of 15% on debentures. Find the total income of Shama and rate of return on her investment.​

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2 months 2021-07-27T13:44:31+00:00 2 Answers 0 views 0

2. Given : Shama has 1000 shares of par value Rs. 10 each of a company and 200 debentures of par value Rs. 100 each.

The company pays an annual dividend of 10% and an interest of 15% on debentures.

To Find : the total income of Shama and rate of return on her investment.​

Solution:

: Shama has 1000 shares of par value Rs. 10

=> Investment = 1000 x 10  = 10000  Rs

200 debentures of par value Rs. 100 each.

=> investment   = 200 x 100  = 20000  Rs

Total investment = 10000 + 20000 = 30000  Rs

The company pays an annual dividend of 10%

=> Dividend income  =  1000  x  (10/100) * 10   =  Rs 1000

interest of 15% on debentures.

debentures. interest  income =  200 x   (100 * 15  * 1 )/100  =  Rs 3000

Total income = 1000 + 3000 = 4000 Rs

Total investment = 30000 Rs

ROI  = (4000/30000) * 100  = 40/3  =  13.33 %

total income of Shama  = Rs 4000

rate of return on her investment.​ = 13.33 %