Q.A person buys 200 shares of face value ₹100 each at a market price of ₹98, paying brokerage of ₹2 per share. The company pays a 9% dividend. Find

The cost per share includes brokerage added to the market price, the income uses the dividend on face value, and the yield relates income to the total brokerage-inclusive cost.

Given: 200 shares, $FV = ₹100$, $MP = ₹98$, brokerage ₹2 per share, dividend rate 9%.

1. Cost of investment (brokerage added on buying):

   $\text{Cost per share} = 98 + 2 = ₹100$

   $\text{Total cost} = 200 \times 100 = ₹20{,}000$

2. Annual income (dividend on face value):

   $\text{Dividend per share} = \dfrac{9}{100}\times100 = ₹9$

   $\text{Annual income} = 200 \times 9 = ₹1{,}800$

3. Yield (on the total brokerage-inclusive cost): $\text{Yield}\% = \dfrac{1800}{20000}\times100 = 9\%$ …

Cross-check via per-share yield. Income per share = ₹9 on an effective cost of ₹100 per share, so yield per share $= \dfrac{9}{100}\times100 = 9\%$. Since every share has the same cost and …

A frequent error is computing yield on the bare market price of ₹98 (giving ≈9.18%) rather than on the ₹100 cost that includes brokerage. Brokerage paid is …