(i) Given Number of shares = 400
Face value of a share Rs 10 market values of a share
= 10 + 2.50 = Rs 12.50
Investment = Number of shares x Market value of a share
= Rs 400 x 12.50 = Rs 5000
(ii) Annual dividend = Number of shares x Face value x Rate of dividend
= 400 x 10 x \(\frac{12}{100}\)
= Rs 480
(iii) Rate of dividend = \(\frac{Dividend}{Investment}\) x 100
= \(\frac{480}{5000}\) x 100
= \(\frac{48}{5}\)
= 9.6%