Question

A man holds 56 shares of a bank and receives a dividend of ₹ 31.50 per quarter. If the dividend he receives be 9% per annum, find the face value of a share.

Answer 1

Given:

Number of shares = 56

Quarterly dividend received = ₹31.50

Annual dividend rate = 9%

Annual dividend:

= ₹ 31.50 × 4

= ₹ 126

Dividend per share: 

`=126/56`

= ₹ 2.25

Dividend:

`=9/100xx  "Face Value"`

`=> 2.25=9/100xx` Face Value

Dividend = `9/100xx "Face Value"`

`=> 2.25=9/100` × Face Value

Face Value = `(2.25xx100)/9`

= ₹ 25