Question

A company issued 50000 shares of par value ₹ 10 each. If the total dividend declared by the company is ₹ 62,500, find the rate of dividend paid by the company.

Answer 1

Given:

Total number of shares = 50,000

Par value of each share = ₹ 10

Total dividend declared = ₹ 62,500

Total face value

= 50,000 × 10

= ₹ 5,00,000

Rate of dividend

`= ("Total Dividend"/"Total Face Value") xx100`

`= (62500/500000) xx100`

= 12.5%