Question

A medicine company declared a semi-annual dividend of `7 1/2%` Find the annual dividend of a person, owning 1250 shares of the company having a par value of ₹ 10 each.

Answer 1

Given:

Semi-annual dividend = `7 1/2%` = 7.5%

Par value per share = ₹ 10

Number of shares = 1250

Annual Dividend Rate

7.5% × 2

= 15%

Dividend per share

= 15% of ₹ 10 

`= 15/100xx10`

= ₹ 1.50

Total dividend

= ₹ 1.50 × 1250

= ₹ 1875