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Mathematics

Arun possesses 600 shares of ₹25 of a company. If the company announces a dividend of 8%, then Arun's annual income is

  1. ₹48
  2. ₹480
  3. ₹600
  4. ₹1200

Shares & Dividends

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Answer

No. of shares = 600

Nominal Value per share = ₹25

Rate of Dividend = 8%

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

=600×8100×25=1200= 600 \times \dfrac{8}{100} \times 25 \\[0.5em] = ₹1200

∴ Option 4 is the correct option.

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