The capital of a company is made up of 50000 prefered shares with dividend of 20% and 200000 common shares, the par value of each type of share being Rs. 10. The company had a total profit of Rs. 180000 out of which Rs. 30000 was kept in reserve fund and the remaining is distributed to common shareholder. Find the dividend percent to the common share holder?

Preference shares: 50000 shares, Rs.10 par value, 20% dividend = 50000 × 10 × 0.20 = Rs.100000. Common shares: 200000 shares, Rs.10 par value. Total profit = Rs.180000. After Rs.30000 reserve and Rs.100000 preferred dividend, remaining for common = 180000 - 30000 - 100000 = Rs.50000. Common dividend % = 50000/(200000×10) = 50000/2000000 = 0.025 = 2.5%. Subtract preferred dividend and reserve from profit, divide by common share capital.