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.

Question

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.

KnowledgeBoat · Accepted Answer

(i) Dividend = No. of shares × Rate of div. × N.V. of 1 share = 10,000 × = ₹ 50,000. Hence, total dividend = ₹ 50,000. (ii) Annual income = No. of shares × Rate of div. × N.V. of 1 share = 72 × = ₹ 360. Hence, annual income of man = ₹ 360. (iii) Let investment be ₹ x. Given return % = 4%. Price paid for each share = Hence, price of each share = ₹ 125.

Mathematics

Shares & Dividends

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