Question

A company with 10,000 shares of nominal value Rs.100 declaers an annual dividend of 8% to the share holder. Jyoti had bought 90 shares of the company at Rs. 150 per share. Calculate the dividend he receives & the percentage of return on his investment.

Answer 1

$$\begin{gathered} \mathrm{Amount}\mathrm{received}=\frac{\mathrm{Dividend}\%}{100}\times (\mathrm{Nominal}\mathrm{value})\times (\mathrm{no}.\mathrm{of}\mathrm{shares}) \\ =\frac{8}{100}\times \left(100\right)\times \left(90\right)=\mathrm{Rs}.720 \\ \mathrm{Percentage}\mathrm{return}\mathrm{on}\mathrm{investment}=\frac{\mathrm{Amount}\mathrm{received}}{\mathrm{total}\mathrm{money}\mathrm{invested}}\times 100=\frac{720}{90\times 150}\times 100=\frac{16}{3}=5.33\% \end{gathered}$$