Two brothers A and B invest Rs.16,000 each in buying shares of two companies. A buys 3% hundred-rupee shares at 80 and B buys ten-rupee shares at par. If they both receive equal dividend at the end of the year, The rate per cent of the dividend received by B is ____.

Question

Two brothers A and B invest Rs.16,000 each in buying shares of two companies. A buys 3% hundred-rupee shares at 80 and B buys ten-rupee shares at par. If they both receive equal dividend at the end of the year, The rate per cent of the dividend received by B is ____.

Accepted Answer

Nominal value (NV) Market value (MV)Dividend (D) as a percentage of the total nominal value of the purchased shares.Consider the investment of brother A. He buys shares at MVA= Rs 80 out of market expenses IA= Rs 16000. So the number of shares he bought isnA=IAMVA=1600080=200. The nominal value of each share is NVA=100 rupees then the nominal value of 200 shares is TNVA= nA×NVA=200×100 rupees = 20000. His profit percentage is 3% dividend. So his profit in amount 3% of total nominal value that is DA=3100×20000=600 rupees.Take, for example, brother B. He purchases ten rupees of shares at par, which means that the share's par value and market value are the same and equal to ten rupees (MVB=NVB=10). He also spent IN=Rs 16,000 on stock purchases. As a result, the number of pieces purchased by B isnb=IBMVB=1600010=1600.The total nominal value of all 1600 shares bought by brother B is 1600×10=16000=TNVB  rupees. We are given the question that he and A both earn the same amount of dividend which is DB=DA=600 rupees as obtained before. So the rate of dividend isDBTMVB×100=60016000×100=3.75%

Two brothers A and B invest Rs.16,000 each in buying shares of two companies. A buys 3% hundred-rupee shares at 80 and B buys ten-rupee shares at par. If they both receive equal dividend at the end of the year, The rate per cent of the dividend received by B is ____.

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