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Question

A company with 10000 shares of Rs 100 each, declares an annual dividend of 5%.
i) What is the total amount of dividend paid by the company ?
ii) What would be the annual income of a man, who has 72 shares, in the company?

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Solution

Nominal value of 10,000 shares=10000×Rs.100=Rs.10,00,000
(i) Divided =5% of Rs.10,00,000
=(5100)×Rs.1000000=Rs.50000
(ii) Nominal value of 72 shares =Rs.100×72=Rs.7200
Dividend =5% pf Rs.7200
=(5100)×Rs.7200=Rs.360



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