Dividend income and rate on investment with brokerage per share Find the annual income and the rate of interest on the investment from 44 shares of Rs. 25 face value each, bought at Rs. 5 premium (market Rs. 30) with brokerage Rs. 0.25 per share, when the dividend rate is 5%.

Introduction / Context:
This exercise combines two computations: (1) annual dividend income based on face value and dividend rate; (2) rate of interest (yield) on the actual investment after including a flat brokerage per share in the purchase price.

Given Data / Assumptions:

• No. of shares = 44
• Face value per share = Rs. 25
• Market price = face + premium = 25 + 5 = Rs. 30
• Brokerage = Rs. 0.25 per share (flat amount, not %)
• Dividend rate = 5% per annum on face value

Concept / Approach:
Income = dividend% * face value * number of shares. Investment = (market price + brokerage) * number of shares. Rate on investment = (income / investment) * 100.

Step-by-Step Solution:
Per-share dividend = 5% * 25 = Rs. 1.25Annual income = 44 * 1.25 = Rs. 55Per-share cost = 30 + 0.25 = Rs. 30.25Total investment = 44 * 30.25 = Rs. 1331.00Rate on investment = (55 / 1331) * 100 ≈ 4.132% ≈ 4.13 %

Verification / Alternative check:
Rough check: 4% of 1331 ≈ 53.24; our income 55 is slightly higher, consistent with ~4.13%.

Why Other Options Are Wrong:
The other income figures assume different face or brokerage interpretations; the given flat brokerage clarifies the precise investment base.

Common Pitfalls:
Treating Rs. 0.25 as 0.25% or computing dividend on market price instead of face value.

Final Answer:
Rs. 55, 4.13 %