Question

2) Shridhar purchased a share of FV 100
for MV of 120. Company declared 15%
dividend on the share. Find the rate of return.​

Answer 1

Answer:

ANSWER

Face Value =100

Market Value =120

The dividend on the share =15% of its FV =

100

15

×100=15

Rate of return =x=

120

15

×100 (∵ Rate of return =

Investment

Income

×100)

⇒2x=

120

3000

=25%

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