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A medicine company issued 125000 shares of par value $ 20 each. If the total dividend declared by the company is $ 375000, find out the rate of dividend paid by the company.
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- 15 %
- 13 %
- 10 %
- 14 %
Correct Option: A
Given that :- Number of shares = 125000
Par value of a share = $ 20
∴ Total par value of 125000 shares = Number of shares x Par value of a share
Total par value of 125000 shares = $ (1250000 × 20) = $ 2500000
Total dividend = $ 375000
| ∴ Rate of dividend paid by the company = |  | Total dividend | x 100 |  | % |
| Total par value |
| Rate of dividend paid by the company = | | 375000 | x 100 | | % = 15 | % |
| 2500000 |
