Ajay owns 560 shares of a company. The face value of each share is Rs 25 and the company declares a dividend of 9%. Calculate:
(i) the dividend Ajay would receive.
(ii) the rate of interest on his investment considering that Ajay bought these shares at Rs 30 per share in the market.
Each subpart: 2 Marks each
Dividend on 1 share = 9% of Rs 25 = Rs 94
(i) Dividend Ajay would receive = (94×560) = Rs 1,260
(ii) Rate of interest = Rs (126030×560)×100=152=712%