A man holds 800 shares of Rs 100 each of a company paying 7.5% dividend semi-annually.
Calculate his annual dividend.

Answer

To calculate the annual dividend for the man holding 800 shares of Rs 100 each with a dividend rate of 7.5% paid semi-annually, follow these steps:

### Step-by-Step Solution:

1. **Identify the number of shares and their nominal value:**
- Number of shares (N) = 800
- Nominal value of each share (NV) = Rs 100

2. **Determine the semi-annual dividend rate:**
- Given dividend rate = 7.5% (this is the rate for each semi-annual period).

3. **Calculate the annual dividend rate:**
- Since the dividend is paid semi-annually, the annual dividend rate = 7.5% × 2 = 15%.

4. **Use the formula for annual dividend:**
- The formula for annual dividend (AD) is:
\[ AD = N \times \text{Dividend Rate} \times NV \]
- Substitute the values into the formula:
\[ AD = 800 \times 15\% \times 100 \]

5. **Convert the percentage to a decimal:**
- 15% = 0.15

6. **Calculate the annual dividend:**
- Now, substituting the values:
\[ AD = 800 \times 0.15 \times 100 \]
- Calculate:
\[ AD = 800 \times 15 = 12000 \]

7. **Final Result:**
- The annual dividend is Rs 12,000.

### Summary:
The annual dividend for the man holding 800 shares is Rs 12,000.

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