sir this is the question from the book -ML aggarwal( avichal publication)class 10th , chapter3, shares and dividends.
It is given that :-
A company with 10000 shares of nominal value of Rs 100 declares an annual dividend of 8% to the share holders. and we are asked to find out
(i) the total amount of dividend paid by the company
If Ramesh bought 90 shares of company at Rs 150 per share.
then we have to find out the dividend he received and
the percentage return on his investment.
please provide lucid explanation
Q no. 16, exercise 3, ML Publication, share and dividends
(i) Nominal value of 1 share = Rs. 100
Nominal value of 10,000 shares = Rs. 100 × 10,000
= Rs. 10,00,000
Dividend% = 8%
Dividend = 8% of Rs. 10,00,000 = (8/100) ×Rs.10,00,000
=Rs.80,000
(ii) Market value of 90 shares = Rs. 150 × 90 = Rs. 13,500
Nominal value of 90 shares = Rs. 100 × 90 = Rs. 9,000
Dividend = 8% of Rs. 9,000 = (8/100) ×Rs.9,000= Rs.720
return%=income*100/investment=720*100/13500=16/3%