Question

A lady holds 1800, rs100 shares of a company that pays 15℅ dividend annually. calculate her annual dividend

Answer 1

Given:

Total number of shares = 1800

Nominal value of each share = Rs. 100

And rate o dividend = 15%

Total face value of 1800 shares = 100 × 1800

= Rs. 180000

Therefore total dividend = 180000 × 15/100

= Rs. 2700

Therefore:

Market value of each share = 100 + 40 = Rs. 140

Now the total investment = 140 × 1800

= Rs. 252000

Therefore percentage on his return

= (27000 × 100)/ 252000

= 10.7%

apx 11%