an important question from the book -ML aggarwal( avichal publication)class 10th , chapter3, shares and dividends ……..this question hasbeen asked in 2007.

we have the information that Ajay owns 560 shares of a company.

The face value of each share is Rs 25. The company declares a dividend 0f 9%.

so how to find the dividend that Ajay will get

and how to find The rate of interest, on his investment if Ajay has paid Rs. 30 for each share.

This question seems confusable so please explain it in lucid manner.

Q no. 15, exercise 3, ML Publication, share and dividends

No. of shares = 560

N.V. of one share = rs 25

Rate of dividend = 9%

(i) Dividend = No. of shares × N.V. × Rate of divd.

= 560 × 25 × 9/100

= rs 1260

(ii) Investment = No. of shares × M.V.

= 560 × 30

= rs 16800

∴ Rate of interest on investment = Dividend/Investment × 100

= 1260/16800 × 100

= 7.5%