Question

(2) Mr.Amol purchased 70 shares of Face Value 100 when the Market value
of the share was 120. Company had given 15% dividend. Find the rate.
of return on investment.
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Answer 1

Answer:

Step-by-step explanation:

No of shares = 50

FV= 100

MV=80

d%=20%

Investment = No of shares × MV

= 50 × 80

= 4000

Annual income = FV × d × No of shares

= 100×20/100× 50

=₹1000

return = Annual divided/ Investment × 100

= 1000/4000 × 100

=25%

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