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Question
Find the annual income derived from 125, Rs. 120 shares paying 5% dividend.
Solution
Nominal value of 1 share = Rs. 120
`\implies` Nominal value of 125 shares
= 125 × Rs. 120
= Rs. 15000
Now, Dividend = 5% of Rs. 15000
= `5/100 xx 15000`
= Rs. 750
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