Question

10. Mr Santosh purchased 25 shares of a company of FV 50 at MV 56. The company declared 9% dividend. After receiving dividend, he sold the shares at MVR 52. He paid brokerage at the rate 0.5% for each transaction. What is his profit or loss in this transaction?
Please Answer This

Answer 1

Face value, FV = 100
Market value of share MV = 100+24+1 = 125
Number of shares bought = 25000/125 = 200
Annual dividend = number of shares*dividend % of face value
= 200*10/100*100
= Rs.2000