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Find out the annual dividend received by Sunil for his 200 preferred shares and 1000 common shares, both of par value $ 100 each if the dividend declared on a preferred share is 10% per annum and an annual dividend of 121/2% on the common shares.
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- $ 14500
- $ 550
- $ 4000
- $ 3500
Correct Option: A
Given :- Face value = $ 100
common shares = 1000 , preferred shares = 200
Dividend on 200 preferred shares = 10% x $ ( preferred shares x Face value )
Dividend on 200 preferred shares = 10% of $ (200 × 100)
| Dividend on 200 preferred shares = $ |  | 10 | x 20000 |  | = $ 2000 | . |
| 100 |
Annual dividend of 121/2% is declared on common shares.
| Dividend on common shares = 12 | % of $ (1000 x 100) | 2 |
| Dividend on common shares = $ | | 25 / 2 | x 100000 | |
| 100 |
| Dividend on common shares = $ | | 25 | x 1000 | | = $ 12500 | . |
| 2 |
∴ Total dividend received by Sunil = Total preferred shares + Total common shares
= $ (2000 + 12500 ) = $ 14500.
