A company with 10000 shares of ₹100 each, declares an annual dividend of 5%.
(i) What is the total amount of dividend paid by the company?
(ii) What would be the annual income of a man, who has 72 shares, in the company?
(iii) If he received only 4% on his investment, find the price he paid for each share.

Question

A company with 10000 shares of ₹100 each, declares an annual dividend of 5%.
(i) What is the total amount of dividend paid by the company?
(ii) What would be the annual income of a man, who has 72 shares, in the company?
(iii) If he received only 4% on his investment, find the price he paid for each share.

KnowledgeBoat · Accepted Answer

(i) Number of shares = 10000 Nominal value per share = ₹100 Rate of Dividend = 5% Annual Dividend = No. of shares x Rate of Dividend x Nominal Value per share Total amount of dividend paid by the company = ₹50000 (ii) Number of shares the man has = 72 Annual income of man with 72 shares = ₹360 (iii) Let price paid by man for each share be ₹x His total investment = ₹72x As per the given, Price paid by man for each share = ₹125

Mathematics

Shares & Dividends

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