Question

₹100 FV of a share of a company has MV ₹120. The Company declared 9% dividend. what is rate of return ​

Answer 1

Answer:

Rate of return is 7.5%

Step-by-step explanation:

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Answer 2

The rate of return is $7.5 \%$

Explanation:

It is given that $FV= Rs. 100$, $M V=R s. 120$

It is also given that the dividend is $9 \%$

The rate of return can be determined using the formula,

$Rate \ of\ return =\frac{\text { Divided }}{\text { Investment }} \times 100$

Dividend = $FV\times Dividend\times1$

               $=100\times\frac{9}{100}\times1$

               $=9$

Thus, Dividend = 9

Investment = MV × No. of shares

                  $=120\times1$

                  $=120$

Thus, Investment = 120

Now, substituting these values in the rate of return formula, we have,

$Rate \ of\ return =\frac{9}{120} \times 100$

                        $=\frac{900}{120}$

                        $=7.5 \%$

Thus, the rate of return is $7.5 \%$

Learn more:

(1) Rs 100 FV of a company has MV 120.The company declared 9% dividend. What is the rate of return ?​

brainly.in/question/14623155

(2) Prasad purchased a share of face value Rs. 100 when its market price was Rs. 150. Company declared a dividend of 12% on the share. What was the rate of return on the investment Prasad made ?

brainly.in/question/8023345