OlsCmpalty.15Ajay owns 560 shares of a company. The face value of each share is 25. The companydeclares a dividend of 9%. Calculate(i) the dividend that Ajay will get.(ii) the rate of interest, on his investment, if Ajay has paid 30 for each share. (2007)

OlsCmpalty.15Ajay owns 560 shares of a company. The face value of each

1.	OlsCmpalty.15Ajay owns 560 shares of a company. The face value of each share is 25. The companydeclares a dividend of 9%. Calculate(i) the dividend that Ajay will get.(ii) the rate of interest, on his investment, if Ajay has paid 30 for each share. (2007)
Answer» Number of shares=560Face Value of 1 share=Rs.25Dividend on 1 share=Rs9/100(25)= Rs.2.25i. Dividend on 560 shares=Rs.2.25×560=Rs.1260ii. Rate of interest=1260/(30×560)×(100%)= 7.5%