Question

A company declares 8 per cent dividend to the shareholders. If a man receives Rs. 2,840 as his dividend, find the nominal value of his shares.

Answer 1

Given: Rate of dividend = 8%

Dividend = 2,840

Let nominal value of his share =  x

We know:

Dividend = Rate of dividend  × Nominal value of a share

So, 2840 = `8/100 xx x`

x = `(2840×100)/8`

= 355 × 100

= 35,500

Nominal value of his share = Rs. 35,500