Question

company has issued 25000 shares of par value of rs 10 if the total dividend declared by the company is 40000 Find the rate of dividend paid by the company​

Answer 1

Explanation:

cost of shares issued by company 25000×10= 2 lakh 50 thousand

i.e.

$2.500.000 \ \ \frac{x}{100} = 40.000 \\ x = 40.000 \times 100 \div 2.50.000 \\ x = 16\%$

Answer 2

Answer:

The rate of dividend paid by the company is 16 %

Explanation :

Solution:

• No. of Share issued by company = 25,000

• F.V. of Share Rs. 10

• Total dividend declared by the company = 40,000

• The rate of dividend paid by the company = ???

★ According to the Question :

FV = 10

FV of 25,000 shares :

25,000 x 10 = 2,50,000

Total dividend = 40,000

Rate of Dividend = Total Dividend /Face value of 25,000 share × 100

Total dividend = 40,000

Face value of 25,000 share = 2,50,000

⇒ 40,000 / 2,50,000 x 100

⇒ 4/25 × 100

⇒ 4 × 4

⇒ 16 %

Rate of Dividend = 16 %

Therefore, the rate of dividend paid by the company is 16 %