A person wants an annual income of Tk 2,400 from a stock paying 8% dividend. If the market price of the Tk 100 stock is Tk 120, how much should he invest?

Question: A person wants an annual income of Tk 2,400 from a stock paying 8% dividend. If the market price of the Tk 100 stock is Tk 120, how much should he invest?

Solution:
→ Calculate Dividend per Share (প্রতি শেয়ারে লভ্যাংশ):
Dividend is paid on face value, not market price.
Dividend per share = Face value × Dividend rate
= Tk 100 × 8%
= Tk 8/share/year.

→ Determine Number of Shares Needed (প্রয়োজনীয় শেয়ার সংখ্যা):
To earn Tk 2,400/year with Tk 8/share/year:
Number of shares = Total desired income ÷ Dividend per share
= 2,400 ÷ 8
= 300 shares.

→ Calculate Total Investment (মোট বিনিয়োগ):
Each share costs Tk 120 (market price).
Total investment = Number of shares × Market price
= 300 × Tk 120
= Tk 36,000.