Q.A man invests ₹9,000 in shares of face value ₹25, available at a premium of ₹5, paying a 10% dividend. Find

A premium is added to the face value to get the market value actually paid; the rest follows the usual share formulas.

Market value at a premium of ₹5

1. Number of shares bought

   $n = \frac{9{,}000}{30} = 300 \text{ shares}$

2. Annual dividend income Dividend per share (on face value ₹25, at 10%):

   $\frac{10}{100}\times25=₹2.50$

   Total dividend:

   $300\times2.50=₹750$

3. Yield $\text{Yield \%} = \frac{2.50}{30}\times100 = \frac{250}{30} = 8.33\%\ (\text{approx.})$ …

Using the face value ₹25 directly as the market value and forgetting to add the ₹5 premium, which would wrongly give $9000/25=360$ shares instead of 300. Also confusing premium (added to face value) with d …