The capital of a company is made up of 50000 | vedclass

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(C) Total profit of the company $= Rs. 180000$.Amount kept in reserve fund $= Rs. 30000$.Net amount available for distribution as dividend $= Rs. (180

Vedclass · Accepted Answer

$25$

Vedclass · Answer

(C) Total profit of the company $= Rs. 180000$.Amount kept in reserve fund $= Rs. 30000$.Net amount available for distribution as dividend $= Rs. (180000 - 30000) = Rs. 150000$.Dividend paid on $50000$ preferred shares at $20 \%$ of par value $(Rs. 10)$:Dividend on preferred shares $= 50000 	imes (20 \% 	ext{ of } 10) = 50000 	imes 2 = Rs. 100000$.Dividend available for common shareholders $= Rs. (150000 - 100000) = Rs. 50000$.Dividend per common share $= \frac{50000}{20000} = Rs. 2.50$.Dividend percentage on common share $= \left( \frac{2.50}{10} 	imes 100 ight) \% = 25 \%$.

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