Question

Find the annual dividend on 500 shares of a stock with par value of ₹ 10 each, if the quarterly dividend is 16%.

Answer 1

Given:

Quarterly dividend = 16%

Par value per share = ₹ 10

Number of shares = 500

Calculate annual dividend rate:

16% × 4

= 64%

Dividend per share:

64% of ₹ 10 `= 64/100xx10`

= ₹ 6.40

= ₹ 6.40 × 500

= ₹ 3200