Question

1) 50 shares of FV * 10 were purchased for MV * 25. The company declared
30% dividend on the shares. Find (1) the sum invested (2) dividend received
(3) rate of return.​

Answer 1

Answer:

Given:

no. of shares:50

FV: 10

MV: 25

dividend: 30%

To find:

(1)the sum invested.

(2)dividend received.

(3)rate of return.

Formula:

(1) sum invested =

(1) sum invested = =Number of shares × MV

(1) sum invested = =Number of shares × MV(2) dividend = FV × dividend/100

(1) sum invested = =Number of shares × MV(2) dividend = FV × dividend/100(3) rate of return =

(1) sum invested = =Number of shares × MV(2) dividend = FV × dividend/100(3) rate of return = =dividend income/sum invested

Solution:

(1) Sum invested=

= no. of shares × MV

=. 50. ×. 25

=. ₹1250

(2) Dividend per share=

= FV × dividend/100

=. 10 × 30/100

=. ₹3

(3) Rate of return=

= dividend income/.

sum invested × 100

= 150/1250 × 100

=. 12%

ans: (1) sum invested = ₹1250

(1) sum invested = ₹1250 (2) dividend per share = ₹150

(1) sum invested = ₹1250 (2) dividend per share = ₹150 (3) rate of return = 12%