Question

Ajay owns 560 shares of a company. The face value of each share is Rs 25. The company declares a dividend of 9%. Calculate the :
(i) The dividend that Ajay will get
(ii) Rate of interest on his investment if Ajay had paid Rs 30 for each share.
[3 MARKS]

Answer 1

Each subpart: 1.5 Marks each

Number of shares of a company = 560
Face value of each share = Rs 25
Rate of dividend = 9%
(i) Amound of dividend Ajay will get
$=Rs(560\times 25\times \frac{9}{100})=Rs1260$
(ii) Ajay had paid Rs 30 for each share and dividend remains the same.
Let r% be the rate of interest
Then, $30\times 560\times \frac{r}{100}=1260$
$\Rightarrow r=\frac{1260\times 100}{560\times 30}=\frac{1500}{2}=7\frac{1}{2}\%$