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Mathematics

Varun possesses 600 shares of ₹ 25 of a company. If the company announces a dividend of 8%, then his annual income is:

  1. ₹ 600

  2. ₹ 1,200

  3. ₹ 480

  4. ₹ 120

Shares & Dividends

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Answer

Given,

Number of shares = 600

Face Value = ₹ 25

Dividend rate = 8%

By formula,

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

= 600×8100×25600 \times \dfrac{8}{100} \times 25 = ₹ 1,200.

Hence, Option 2 is the correct option.

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