Question

B) A company makes Rs. 90,00,000 profit in a year and distributes its certain percent as

dividend to the shareholders. If 50,000 shares are distributed among shareholders and
the dividend per share is equal to Rs.5.40, what percent of the profit is distributed as
dividend?

Answer 1

First, we need to find the total amount of dividend distributed among shareholders:

Dividend per share = Rs. 5.40

Number of shares distributed = 50,000

Total dividend = Dividend per share x Number of shares distributed

Total dividend = 5.4 x 50,000

Total dividend = Rs. 2,70,000

Now, we can find the percentage of profit distributed as dividend:

Total profit = Rs. 90,00,000

Dividend distributed = Rs. 2,70,000

Percentage of profit distributed as dividend = (Dividend distributed / Total profit) x 100

Percentage of profit distributed as dividend = (2,70,000 / 90,00,000) x 100

Percentage of profit distributed as dividend = 3%

Therefore, 3% of the profit is distributed as dividend.