A company with 500 shares of nominal value ₹ 120 declares and annual dividend of 15%. Calculate :

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

(ii) the annual income of Mr Sharma who hold 80 shares of the company.

If the return percent of Mr. Sharma from his shares is 10%, find the market value of each shares.

(i) No. of shares = 500

Nominal Value per share = ₹ 120

Rate of Dividend = 15%

By formula,

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

= 500 x $\dfrac{15}{100}$ x 120

= ₹ 9,000

Hence, total amount of dividend paid by the company = ₹ 9,000.

(ii) No. of shares held by Mr. Sharma = 80

Nominal Value per share = ₹ 120

Rate of Dividend = 15%

By formula,

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

= 80 x $\dfrac{15}{100}$ x 120

= ₹ 1,440.

Hence, annual income of Mr. Sharma = ₹ 1,440.

By formula,

Rate of dividend × N.V. = Profit (return%) × M.V.

$\Rightarrow \dfrac{15}{100} \times 120 = \dfrac{10}{100} \times M.V. \\[1em] \Rightarrow 15 \times 120 = 10 \times M.V. \\[1em] \Rightarrow M.V. = \dfrac{15 \times 120}{10} = 180.$

Hence, market value of each share = ₹ 180.