Dividend income from number of shares A man invested Rs. 4455 in Rs. 10 shares quoted at Rs. 8.25. If the dividend rate is 6%, what is his annual dividend income?

Introduction / Context:
To compute dividend income, first determine how many shares are purchased from the cash outlay at the quoted market price, then multiply the number of shares by the dividend per share (which is based on face value, not market price).

Given Data / Assumptions:

• Total investment = Rs. 4455.
• Face value per share = Rs. 10.
• Quoted price per share = Rs. 8.25.
• Dividend rate = 6% on face value.

Concept / Approach:
Number of shares = Investment / Market price per share. Dividend per share = (Dividend rate) * Face value. Total income = Shares * Dividend per share.

Step-by-Step Solution:
Shares bought = 4455 / 8.25 = 540 shares (since 8.25 * 540 = 4455).Dividend per share = 6% of 10 = Rs. 0.60.Annual income = 540 * 0.60 = Rs. 324.00.

Verification / Alternative check:
An equivalent check: Treat blocks of 100 shares. 540 shares equal 5.4 blocks of Rs. 100 face value each, each block paying Rs. 6 annually; 5.4 * 6 = 32.4 tens = Rs. 324.

Why Other Options Are Wrong:
Rs. 267.30 and Rs. 327.80 are not integer multiples of Rs. 0.60 per share for 540 shares; Rs. 103.70 is unrelated to these figures; Rs. 300.00 undercounts income.

Common Pitfalls:
Applying 6% to market price instead of face value. Dividends are declared on face value unless otherwise stated.

Final Answer:
Rs. 324.00