A business company makes a net profit of Rs 80,00,000 in a year. The Board of Directors declares 12% cash dividend from the net profit. If the company has sold 000 shares, answer the following questions. i) Find the total cash dividend. (ii) Find the dividend for each share.
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Saturday, May 27, 2023
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A business company makes a net profit of Rs 80,00,000 in a year. The Board of Directors declares 12% cash dividend from the net profit. If the company has sold 000 shares, answer the following questions. i) Find the total cash dividend. (ii) Find the dividend for each share.
(i) To find the total cash dividend, we need to calculate 12% of the net profit.
12% of Rs 80,00,000 = (12/100)*80,00,000 = Rs 9,60,000
Therefore, the total cash dividend is Rs 9,60,000.
(ii) To find the dividend for each share, we divide the total cash dividend by the total number of shares.
Dividend per share = Total cash dividend / Total number of shares
As the number of shares is not given in the question, we cannot find the exact dividend per share. However, if we assume that the company has sold 1000 shares, then the dividend per share would be:
Dividend per share = Rs 9,60,000 / 1000 = Rs 960
Therefore, the dividend for each share would be Rs 960 if the company has sold 1000 shares.
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