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Question
500, ₹ 50 shares at par earn a dividend of ₹ 1,250 in one year. The rate of dividend is ______.
Options
10%
7.5%
12.5%
5%
MCQ
Fill in the Blanks
Solution
500, ₹ 50 shares at par earn a dividend of ₹ 1,250 in one year. The rate of dividend is 5%.
Explanation:
Face value of one share = ₹ 50
No. of shares bought = 500
Total sum invested in shares
= 500 × ₹ 50
= ₹ 25000
Dividend in one year = ₹ 1250
∴ Rate of dividend
= `"Dividend"/"Sum Invested" xx 100`
= `1250/25000 xx 100`
= 5%
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