A company with 10,000 shares of ₹ 100 each, declares an annual dividend of 5%.

(i) What is the total amount of dividend paid by the company ?

(ii) What should be the annual income of a man who has 72 shares in the company ?

(iii) If he received only 4% of his investment, find the price he paid for each share.

(i) Dividend = No. of shares × Rate of div. × N.V. of 1 share

= 10,000 × $\dfrac{5}{100} \times 100$

= ₹ 50,000.

Hence, total dividend = ₹ 50,000.

(ii) Annual income = No. of shares × Rate of div. × N.V. of 1 share

= 72 × $\dfrac{5}{100} \times 100$

= ₹ 360.

Hence, annual income of man = ₹ 360.

(iii) Let investment be ₹ x.

Given return % = 4%.

$\therefore 4 = \dfrac{360}{x} \times 100 \\[1em] \Rightarrow x = \dfrac{36000}{4} = 9,000.$

Price paid for each share = $\dfrac{\text{Investment}}{\text{No. of shares}} = \dfrac{9000}{72} = 125.$

Hence, price of each share = ₹ 125.