Find the annual dividend received by Nishita from 1200 preferred shares and 3000 common shares both ...

Find the annual dividend received by Nishita from 1200 preferred shares and 3000 common shares both of par value Rs. 50 each if the dividend paid on preferred shares is 10% and semi-annual dividend of 3½ % is declared on common shares.

Quiz

Answer/Solution

16500

Steps/Work

Total number of preferred shares = 1200
Face value = Rs.50
dividend paid on preferred shares is 10%
Dividend per share = 50×10/100 = Rs.5
Total Dividend = 1200 × 5 = 6000
Total number of common shares = 3000
Face value = Rs.50
Semi-annual dividend of 3½ % is declared on common shares.
semi-annual dividend per share = 50×7/2×100 = Rs.74
Total semi-annual dividend = 7/4×3000 = Rs.5250
annual dividend = Rs.5250 × 2 = Rs.10500
Total dividend on all all shares(preferred and common) = 6000 + 10500 = Rs.16500
Answer is B.

General Calculator / Auto Solver

Find the annual dividend received by nishita from preferred shares and common shares both of par value $ each if the dividend paid on preferred shares is % and semi - annual dividend of ½ % is declared on common shares.

Calculated Answer

16500

Step by Step Solution

In order to solve problem, you must evaluate (n3 * n0 * n2) / 100 + ((n4 + 1 / 2) * n1 * n2) / 100 + ((n4 + 1 / 2) * n1 * n2) / 100.

n0 =1200
n1 =3000
n2 =50
n3 =10
n4 =3