Find the annual dividend received by Nishita from 1200 preferred share...
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.7/4
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
Find the annual dividend received by Nishita from 1200 preferred share...
% is paid on common shares.
First, let's calculate the total investment made by Nishita:
Total investment = (1200 x 50) + (3000 x 50) = 60,000 + 1,50,000 = Rs. 2,10,000
Now, let's calculate the annual dividend received from preferred shares:
Dividend received from preferred shares = 10% of par value x number of preferred shares
= 10/100 x 50 x 1200
= Rs. 60,000
Next, let's calculate the semi-annual dividend received from common shares:
Dividend received from common shares per share = 3% of par value/2
= (3/100 x 50)/2
= Rs. 0.75
Dividend received from common shares per year per share = 2 x Rs. 0.75 = Rs. 1.50
Total dividend received from common shares per year = dividend received per share per year x number of common shares
= Rs. 1.50 x 3000
= Rs. 4,500
Therefore, the total annual dividend received by Nishita from both preferred and common shares is:
Total annual dividend = dividend received from preferred shares + dividend received from common shares
= Rs. 60,000 + Rs. 4,500
= Rs. 64,500
Hence, Nishita receives an annual dividend of Rs. 64,500 from her investment in 1200 preferred shares and 3000 common shares.