NumericalModerate1.5 marks
5(a)
A company with 500 shares of nominal value ₹ 120 declares an annual dividend of 15%. Calculate:
the total amount of dividend paid by the company.
Topic: Shares, dividend and return
Previous-year question practice database
Answer
Exam answer
Nominal value of each share = ₹120 Dividend rate = 15% Number of shares = 500
Dividend per share:
= 15% of ₹120
= 15/100 × ₹120
= ₹18
Total dividend paid:
= 500 × ₹18
= ₹9,000
Answer:
₹9,000.
Explanation
Dividend is calculated on the nominal value of a share. Each ₹120 share earns ₹18 at 15%, and the company has 500 such shares.
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