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Question

A company with 4000 shares of nominal value of Rs 110 each declares an annual dividend of 15%.
(i) Calculate the total amount of dividend paid by the company
(ii) Calculate the annual income of Shah Rukh who holds 88 shares in the company
(iii) If he received only 10% on his investment, find the price Shah Rukh paid for each share.
[4 MARKS]


Solution

part (i): 1 Mark
part (ii): 1 Mark
part (iii): 1.5 Marks

(i) Total dividend paid by the company
=Dividend%×No.of shares×NV100
=Rs15×4000×110100=Rs 66,000.
(ii) Annual income of Shah Rukh
=Rs15100×110×88=Rs1452.
(iii) NV×Dividend%=MV×Return%
110×15=MV×10
MV=1510×110=Rs165.

Mathematics

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