Mathematics

A company with 10,000 shares of nominal value ₹ 100 declares an annual dividend of 8% to the share-holders.
(i) Calculate the total amount of dividend paid by the company.
(ii) Ramesh had bought 90 shares of the company at ₹ 150 per share. Calculate dividend he receives and percentage return on his investment.

83 Likes

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

= 10,000 × $\dfrac{8}{100} \times 100$

= ₹ 80,000.

Hence, annual dividend paid by company = ₹ 80,000.

(ii) Investment = 90 × ₹ 150 = ₹ 13,500

Annual dividend = No. of shares × Rate of div. × N.V. of 1 share

= 90 × $\dfrac{8}{100} \times 100$

= ₹ 720.

Return% = $\dfrac{\text{Annual dividend}}{\text{Investment}} \times 100 = \dfrac{720}{13500} \times 100 = 5\dfrac{1}{3}$ %

Hence, dividend received by Ramesh = ₹ 720 and return % = $5\dfrac{1}{3}$ %.

Answered By

27 Likes