Mr. Gupta invested ₹33000 in buying ₹100 shares of a company at 10% premium. The dividend declared by the company is 12%.

Money invested = ₹33000

N.V. of share = ₹100

M.V. = N.V + Premium

= ₹100 + $\frac{10}{100} \times 100$

= ₹100 + ₹10

= ₹110.

(a) Number of shares = $\frac{\text{Money invested}}{\text{M.V.}} = \frac{33000}{110}$ = 300.

Hence, no. of shares purchased = 300.

(b) By formula,

Annual dividend = Number of shares × Rate of dividend × N.V.

= 300 × $\frac{12}{100} \times 100$

= ₹3600.

Hence, annual dividend = ₹3600.