Dividend income from number of $100 shares Jatin invested $27260 in $100 shares at a market price of $116 each. The company pays a 16% dividend. What is his annual dividend income?

Introduction / Context:
First determine how many shares are purchased from the total investment at the stated market price. Then compute the dividend based on the face value and the declared percentage.

Given Data / Assumptions:

• Total investment = $27,260
• Market price per $100 share = $116
• Dividend rate = 16% on face value ($100)

Concept / Approach:
No brokerage mentioned. Number of shares = investment / market price per share. Income = dividend per share * number of shares, where dividend per share = 16% of face value.

Step-by-Step Solution:
Number of shares = 27260 / 116 = 235 sharesDividend per share = 16% of $100 = $16Total income = 235 * $16 = $3760

Verification / Alternative check:
Rough check: $16 * 200 = $3200, plus $16 * 35 = $560; sum $3760.

Why Other Options Are Wrong:
$3560, $3660, $2760, $3360 do not match 235 shares at $16 each.

Common Pitfalls:
Accidentally using $116 as the dividend base; the dividend is always on face value ($100).

Final Answer:
$ 3760