Question

Dividend due at the end of a year on 250 shares of Rs. 50 each, if the half yearly dividend is 4% of the value of share, is
1.  Rs. 800
2. Rs. 900
3. Rs. 1,000
4. Rs. 1,200

Answer 1

Correct Answer - Option 3 : Rs. 1,000

Given:

Number of shares = 250

Value of each share = Rs 50

Half-yearly dividend percentage = 4%

Calculation:

Half-yearly dividend of 1 share = 50 × 4/100 = Rs 2

Yearly dividend of 1 share = 2 × Rs 2 = Rs 4

Yearly dividend of 250 shares = 250 × Rs 4 = Rs 1,000

∴ The yearly dividend for 250 shares is Rs 1,000.