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Question
A company declares a semi-annual dividend of 5%. Daniel has 400 shares of the company. If Daniel’s annual income from the shares is Rs. 1000, find the face value of each share.
Solution
Given that,
Semi-annual dividend = 5%
∴ Annual dividend = 10%
Number of shares with Daniel = 400
Daniel’s annual income from the shares = ₹ 1000
∴ Annual income from one share = `1000/400`
= ₹ 2.5
But annual income from one share
= `"Annual dividend"/100 xx "Face value"`
∴ `2.5 = 10/100 xx "Face value of the share"`
∴ Face value of the share = ₹ 25
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