a company with 20000 shares of rs50 each declares dividend 8% what is the total dividend paid by the company,what will be the annual income of ahmed who has 25 shares in the company,if he recived only 5% on his investment find the price paid by him for each share
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Given:
A company with 20000 shares of rs50 each declares dividend 8%.
To find:
What is the total dividend paid by the company?
What will be the annual income of ahmed who has 25 shares in the company.
If he recived only 5% on his investment find the price paid by him for each share.
Solution:
From given, we have,
Nominal value of 1 share = Rs. 50
Nominal value of 20,000 shares = 20,000 × 50 = Rs. 10,00,000
Dividend 8%
= 8/100 × 10,00,000 = Rs. 80,000
Nominal value of 25 shares = Rs. 50 × 25 = Rs. 1250
Dividend = 8% of Rs. 1250
= 8/100 × 1250 = Rs 100
Let the market value of 1 share = Rs x
Then the market value of 20,000 share = Rs 20,000x
Return % = 5%
5% of Rs. 20,000y = Rs. 80,000
5/100 × 20,000y = 80,000
x = Rs. 80
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