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A company issued 50000 shares of par value $ 100 each. If the total dividend declared by the company is $ 125000, out of which `50000 have been kept in reserve fund and the remaining is distributed as dividend, find out the rate of dividend paid by the company.
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2 3 % 4
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1 1 % 2
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1 1 % 4
- 2 %
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Correct Option: B
Here , Face value = $ 100
Total dividend declared = $ 125000
Amount kept in reserve fund = $ 50000
Net amount paid as dividend to the shareholders = $ (125000 - 50000) = $ 75000
Number of shares of par value $ 100 each = 50000
∴ Total par value of 50000 shares = Number of shares x Face value
Total par value of 50000 shares = $ (50000 × 100) = $ 5000000
Rate of dividend paid by the company =  | Net amount paid as dividend | x 100% |  |
| Total shares |
| Rate of dividend paid by the company = | | 75000 | x 100 | | % = | 3 | % = 1 | 1 | % . |
| 5000000 | 2 | 2 |
