#### A company with 4000 shares of nominal value of Rs. 110 declares annual dividend of 15%. Calculate :

(i) the total amount of dividend paid by the company,

(ii) the annual income of Shah Rukh who holds 88 shares in the company,

(iii) if he received only 10% on his investment, find the price Shah Rukh paid for each share. (2008)

**Solution:**

Number of shares = 4000

Nominal (face) value of each share = Rs. 110

Total face value of 4000 shares = Rs. 110 x 4000

= Rs, 440000

Rate of annual dividend = 15%

#### By investing Rs. 7500 in a company paying 10 percent dividend, an income of Rs. 500 is received. What price is paid for each Rs. 100 share

**Solution:**

Investment = Rs. 7500

Rate of dividend = 10%,

Total income = Rs. 500.

Face value of each share = Rs. 100

Total face value = = Rs. 5000

If face value is Rs. 5000, then investment = Rs. 7500

and if face value is Rs. 100 then market value of