Question

Ram earned $12$% interest on his investments of $Rs.24000$. The market value of each share is $Rs.15$ and par value is $Rs.10$. What is the dividend %. Ram purchased $1200$ shares of this firm?

• A. $24$%
• B. $22$%
• C. $23$%
• D. $25$%

Answer 1

Answer: (A)

$24$%

Interest earned $=\frac{12\times 24000}{100}=2880$
$\frac{\text{Interest earned}}{\text{share}}=\frac{2880}{1200}$, Dividend$=24$
Dividend% $=\frac{Div\times 100}{\text{par value}}$
$\frac{2.4\times 100}{10}$
$=24$%