A medicine company issued 125000 shares of par value Rs. 20 each. If the total dividend declared by the company is Rs. 375000, find the rate of divided paid by the company.
Explanation:
Number of shares = 125000
Par value of a share = Rs. 20
Total par value of 125000 shares = Rs. (1250000 x 20) = Rs. 2500000
Total dividend = Rs. 375000
Rate of dividend paid by the company = 375000 /2500000 x 100 = 15%
Hence, option 1 is the correct answer.
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By: Amit Kumar