Question

4. A man bought 400 shares out of 40,000 shares of a bank. The bank earned some profit and it distributed 12% of the net profit and dividend. If the man received Rs 4,00,000 dividend in a year. a) What percentage of shares is bought by him?

b) What is total dividend distributed?
c) Find the net profit of the bank.
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Answer 1

The man bought 1% of the shares, the total dividend distributed was Rs 4,00,00,000, and the bank's net profit was Rs 33,33,33,333.33.

Step-by-step explanation:

The problem involves determining the percentage of shares bought, the total dividend distributed, and the net profit of the bank using the given information about the shares and dividends.

a) What percentage of shares is bought by him?

The man bought 400 shares out of 40,000 shares which means he bought 1% of the total shares [(400/40,000) × 100 = 1%].

b) What is total dividend distributed?

If the man received Rs 4,00,000 as a dividend for his 1% share, the total dividend distributed by the bank is Rs 4,00,00,000 [4,00,000 ÷ 1%].

c) Find the net profit of the bank.

Considering that 12% of the net profit was distributed as the dividend and the total dividend distributed is Rs 4,00,00,000, we calculate the net profit by taking the total dividend to be 12% of the net profit. Hence, the net profit is Rs 33,33,33,333.33 [4,00,00,000 / 12%].