Ajay Owns 560 Shares Of Company

Ajay owns 560 shares of a company. The face value of each share is Rs. 25. The company declares a … , if Ajay had paid Rs. 30 for…

Answers:

No. of shares = 560

N.V. of one share = ₹ 25

Rate of dividend = 9% 

(i) Dividend = No. of shares × N.V. × Rate of divd.

= 560 × 25 × 9/100

= ₹ 1260

(ii) Investment = No. of shares × M.V.

= 560 × 30

= ₹ 16800

∴ Rate of interest on investment = Dividend/Investment × 100

= 1260/16800 × 100

= 7.5%