Question

4. * 50 shares of a company are quoted at a
discount of 10%. Find the rate of dividend
given by the company, the return on the
investment on these shares being 20 percent.​

Answer 1

Answer:

18%

Step-by-step explanation:

Nominal value of 1 share = Rs. 50

Nominal value of 1 share = Rs. 50 Market value of 1 share = Rs. 50 − 10% of Rs. 50 = Rs. 50 – Rs. 5 = Rs. 45

Nominal value of 1 share = Rs. 50 Market value of 1 share = Rs. 50 − 10% of Rs. 50 = Rs. 50 – Rs. 5 = Rs. 45 Profit % on investment = 20%

Nominal value of 1 share = Rs. 50 Market value of 1 share = Rs. 50 − 10% of Rs. 50 = Rs. 50 – Rs. 5 = Rs. 45 Profit % on investment = 20% Then profit on 1 share = 20% of Rs. 45 = Rs. 9 ∴ Dividend % = (9/50) ×100%=18% Ans.