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Mathematics

100 shares at par value of ₹ 120 each, give 10% half-yearly dividend. The annual dividend from these shares is :

  1. ₹ 7200

  2. ₹ 2400

  3. ₹ 1200

  4. ₹ 10800

Shares & Dividends

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Answer

Given,

Dividend % = 10% half-yearly or 20% yearly.

N.V. = ₹ 120

No. of shares = 100

By formula,

Dividend = No. of shares × Rate of dividend × N.V. of share

Substituting values we get :

Dividend=100×20%×120=100×20100×120=2400.\text{Dividend} = 100 \times 20\% \times 120 \\[1em] = 100 \times \dfrac{20}{100} \times 120 \\[1em] = ₹ 2400.

Hence, Option 2 is the correct option.

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