A company with 4000 shares of nominal value of ₹110 declares annual dividend of 15%. Calculate :

(i) the total amount of dividend paid by the company,

(ii) the annual income of Shah Rukh who holds 88 shares in the company.

(iii) if he received only 10% on his investment, find the price Shah Rukh paid for each share.

(i)
No. of shares = 4000

Nominal Value per share = ₹110

Rate of Dividend = 15%

Annual Dividend = No. of shares x Rate of Dividend x Nominal Value per share

$= 4000 \times \dfrac{15}{100} \times 110 \\[0.5em] = ₹66000$

∴ Total amount of dividend paid by the company = ₹66000

(ii)
No. of shares held by Shahrukh = 88

Nominal Value per share = ₹110

Rate of Dividend = 15%

Annual Dividend = No. of shares x Rate of Dividend x Nominal Value per share

$= 88 \times \dfrac{15}{100} \times 110 \\[0.5em] = ₹1452$

∴ Annual income of Shahrukh = ₹1452

(iii)
Let the price Shahrukh paid for each share be x

Total investment of Shahrukh = ₹88x

$\% \text{Return} = \Big(\dfrac{\text{Annual Inc.}}{\text{Investment}} \times 100\Big)\% \\[0.5em] 10 = \Big(\dfrac{1452}{88x} \times 100\Big) \% \\[0.5em] x = \dfrac{14520}{88} \\[0.5em] x = \bold{165}$

∴ Price Shahrukh paid for each share = ₹165