Q.A person invests ₹24,000 in shares of face value ₹100 which are available in the market at ₹120 per share. The company declares a dividend of 15%. Find

Shares = investment / market value; dividend is on face value; return is on money invested.

1. Number of shares — divide the amount invested by the market value per share:

   $\text{No. of shares}=\frac{24000}{120}=200\ \text{shares}.$

2. Dividend income — dividend is declared on the face value. Total face value $=200\times100=₹20{,}000$, so

   $\text{Dividend}=\frac{15}{100}\times20000=₹3{,}000.$

3. Rate of return — the income compared with the money actually invested: $\text{Rate of return}=\frac{3000}{24000}\times100=12.5\%.$ …

Taking the $15\%$ dividend on the market value $₹120$ or on the amount invested. Dividend is always on the face value ($₹100$ …