Question

Aakash has 500 shares in a cooperative that earned Rs 600,000 in a year. If 10% of the total profit is given as a cash dividend to the shareholders, how much cash dividend did Aakash receive?

a. Rs 60,000
b. Rs 6,000
c. Rs 600
d. Rs 60

Answer 1

Aakash's cash dividend from the cooperative cannot be accurately calculated without knowing the total number of shares. Assuming he owns all the shares, he'd receive Rs 60,000. Otherwise, he receives a proportionate amount based on the total shares.

Step-by-step explanation:

When a cooperative earns a profit, it sometimes shares a portion of these profits with its shareholders in the form of a dividend. To determine the cash dividend Aakash will receive, we first calculate 10% of the total profit made by the cooperative, which is Rs 600,000. Then we distribute this amount proportionally to the number of shares he owns.

Calculation:

1. Total profit = Rs 600,000.
2. 10% of total profit for the dividend = 0.10 × 600,000 = Rs 60,000.
3. Total cash dividend to be distributed = Rs 60,000.
4. Since the total number of shares is not given, we assume that each share gets an equal part of the dividend.
5. Dividend received by Aakash for his 500 shares = (500 ÷ total number of shares) × Rs 60,000.

Without the total number of shares, we cannot calculate the exact amount Aakash receives. If we assume Aakash owns all shares, then he would receive the entire dividend of Rs 60,000. However, if there are more shares, Aakash would receive a proportionally smaller amount.