Question

7. Suppose you had Nu 25,000 to

invest in shares that are being sold at
par. How much more would you earn if
the shares paid a dividend rate of 30%
than if they paid a dividend rate of 5%?​

Answer 1

Amount earn = NU 7,500

Amount earn = NU 1,250

Explanation:

Given:

Investment amount = NU 25,000

Dividend rate = 30%

Dividend rate = 5%

Find:

Amount earn.

Computation:

⇒ Amount earn (Dividend rate = 30%)

Amount earn = Investment amount × Dividend rate

Amount earn = NU 25,000 × 30%

Amount earn = NU 7,500

⇒ Amount earn (Dividend rate = 5%)

Amount earn = Investment amount × Dividend rate

Amount earn = NU 25,000 × 5%

Amount earn = NU 1,250