#### Ajay owns 560 shares of a company. The face value of each share is Rs. 25. The company declares a dividend of 9%. Calculate.

(i) the dividend that Ajay will get.

(ii) the rate of interest, on his investment if Ajay has paid Rs. 30 for each share. (2007)

**Solution:**

No. of shares = 560

Face value of each share = Rs. 25

Rate of dividend = 9% p.a.

Total face value of 560 shares = Rs. 25 × 560

= Rs. 14000

#### A company with 10000 shares of nominal value of Rs. 100 declares an annual dividend of 8% to the share holders.

(i) Calculate the total amount of dividend paid by the company.

(ii) Ramesh bought 90 shares of the company at Rs. 150 per share.

Calculate the dividend he received and the percentage return on his investment. (1994)

**Solution:**

(i) Number of shares = 10000

Nominal value of each share = Rs. 100

Rate of annual dividend = 8%

Total face value of 10000 shares

= Rs. 100 x 10000

= Rs. 1000000

and amount dividend = Rs

= Rs 80000

(ii) Number of shares = 90

Face value of each share = Rs. 150

Total face value of 90 shades