A company with 10000 shares of nominal value `100rs` declares an annual dividend of `8%` to the share-holders
(i) Calculate the total amount of dividend paid by the company.
(ii) Ramesh had bought 90 shares of the company at `150rs` per share. Calculate the dividend he receives and the percentage of return on his investment.

Answer

Let's solve the problem step by step.

### Given:
- Total number of shares = 10,000
- Nominal value of each share = ₹100
- Annual dividend declared = 8%
- Ramesh's shares = 90
- Market price of Ramesh's shares = ₹150

### (i) Calculate the total amount of dividend paid by the company.

1. **Calculate the total nominal value of all shares:**
\[ \text{Total nominal value} = \text{Number of shares} \times \text{Nominal value per share} \]
\[ \text{Total nominal value} = 10,000 \times 100 = ₹10,00,000 \]

2. **Calculate the total dividend paid by the company:**
\[ \text{Total dividend} = \text{Annual dividend rate} \times \text{Total nominal value} \]
\[ \text{Total dividend} = \frac{8}{100} \times 10,00,000 = ₹80,000 \]

### (ii) Calculate the dividend Ramesh receives and the percentage of return on his investment.

1. **Calculate the nominal value of Ramesh's shares:**
\[ \text{Nominal value of Ramesh's shares} = \text{Number of shares} \times \text{Nominal value per share} \]
\[ \text{Nominal value of Ramesh's shares} = 90 \times 100 = ₹9,000 \]

2. **Calculate the dividend Ramesh receives:**
\[ \text{Dividend received by Ramesh} = \frac{8}{100} \times \text{Nominal value of Ramesh's shares} \]
\[ \text{Dividend received by Ramesh} = \frac{8}{100} \times 9,000 = ₹720 \]

3. **Calculate the market value of Ramesh's shares:**
\[ \text{Market value of Ramesh's shares} = \text{Number of shares} \times \text{Market price per share} \]
\[ \text{Market value of Ramesh's shares} = 90 \times 150 = ₹13,500 \]

4. **Calculate the percentage of return on Ramesh's investment:**
\[ \text{Return percentage} = \left( \frac{\text{Dividend received}}{\text{Market value of shares}} \right) \times 100 \]
\[ \text{Return percentage} = \left( \frac{720}{13,500} \right) \times 100 \approx 5.33\% \]

### Final Answers:
(i) Total amount of dividend paid by the company = ₹80,000
(ii) Dividend Ramesh receives = ₹720
Percentage of return on his investment = 5.33%