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A company capital is made up of 3,00,000 preference shares with 10% dividend and 700000 equity shares. Both types of shares have par value of rs 100 each. In a particular year the company had a profit of 900000 from which rs 75000 was kept in reserve and the remaining was distributed to shareholders. Find the rate of dividend received by the equity shareholders?
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A company capital is made up of 3,00,000 preference shares with 10% di...
Calculation of Dividend:
To calculate the rate of dividend received by the equity shareholders, we need to determine the total profit available for distribution and then divide it by the total number of equity shares.
Step 1: Calculation of Total Profit Available for Distribution
Total profit available for distribution can be calculated by subtracting the amount kept in reserve from the total profit earned by the company.
Total profit available for distribution = Total profit earned - Amount kept in reserve
Total profit available for distribution = Rs 900,000 - Rs 75,000
Total profit available for distribution = Rs 825,000
Step 2: Calculation of Dividend per Equity Share
Dividend per equity share can be calculated by dividing the total profit available for distribution by the total number of equity shares.
Dividend per equity share = Total profit available for distribution / Total number of equity shares
Dividend per equity share = Rs 825,000 / 700,000
Dividend per equity share = Rs 1.18
Step 3: Calculation of Dividend Rate
Dividend rate can be calculated by dividing the dividend per equity share by the par value of an equity share and multiplying it by 100.
Dividend rate = (Dividend per equity share / Par value of equity share) x 100
Dividend rate = (Rs 1.18 / Rs 100) x 100
Dividend rate = 1.18%
Conclusion:
The rate of dividend received by the equity shareholders is 1.18%.
To calculate the rate of dividend received by the equity shareholders, we need to determine the total profit available for distribution and then divide it by the total number of equity shares.
Step 1: Calculation of Total Profit Available for Distribution
Total profit available for distribution can be calculated by subtracting the amount kept in reserve from the total profit earned by the company.
Total profit available for distribution = Total profit earned - Amount kept in reserve
Total profit available for distribution = Rs 900,000 - Rs 75,000
Total profit available for distribution = Rs 825,000
Step 2: Calculation of Dividend per Equity Share
Dividend per equity share can be calculated by dividing the total profit available for distribution by the total number of equity shares.
Dividend per equity share = Total profit available for distribution / Total number of equity shares
Dividend per equity share = Rs 825,000 / 700,000
Dividend per equity share = Rs 1.18
Step 3: Calculation of Dividend Rate
Dividend rate can be calculated by dividing the dividend per equity share by the par value of an equity share and multiplying it by 100.
Dividend rate = (Dividend per equity share / Par value of equity share) x 100
Dividend rate = (Rs 1.18 / Rs 100) x 100
Dividend rate = 1.18%
Conclusion:
The rate of dividend received by the equity shareholders is 1.18%.
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A company capital is made up of 3,00,000 preference shares with 10% dividend and 700000 equity shares. Both types of shares have par value of rs 100 each. In a particular year the company had a profit of 900000 from which rs 75000 was kept in reserve and the remaining was distributed to shareholders. Find the rate of dividend received by the equity shareholders?
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A company capital is made up of 3,00,000 preference shares with 10% dividend and 700000 equity shares. Both types of shares have par value of rs 100 each. In a particular year the company had a profit of 900000 from which rs 75000 was kept in reserve and the remaining was distributed to shareholders. Find the rate of dividend received by the equity shareholders? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A company capital is made up of 3,00,000 preference shares with 10% dividend and 700000 equity shares. Both types of shares have par value of rs 100 each. In a particular year the company had a profit of 900000 from which rs 75000 was kept in reserve and the remaining was distributed to shareholders. Find the rate of dividend received by the equity shareholders? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company capital is made up of 3,00,000 preference shares with 10% dividend and 700000 equity shares. Both types of shares have par value of rs 100 each. In a particular year the company had a profit of 900000 from which rs 75000 was kept in reserve and the remaining was distributed to shareholders. Find the rate of dividend received by the equity shareholders?.
A company capital is made up of 3,00,000 preference shares with 10% dividend and 700000 equity shares. Both types of shares have par value of rs 100 each. In a particular year the company had a profit of 900000 from which rs 75000 was kept in reserve and the remaining was distributed to shareholders. Find the rate of dividend received by the equity shareholders? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about A company capital is made up of 3,00,000 preference shares with 10% dividend and 700000 equity shares. Both types of shares have par value of rs 100 each. In a particular year the company had a profit of 900000 from which rs 75000 was kept in reserve and the remaining was distributed to shareholders. Find the rate of dividend received by the equity shareholders? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A company capital is made up of 3,00,000 preference shares with 10% dividend and 700000 equity shares. Both types of shares have par value of rs 100 each. In a particular year the company had a profit of 900000 from which rs 75000 was kept in reserve and the remaining was distributed to shareholders. Find the rate of dividend received by the equity shareholders?.
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