Question

82. 160 shares of face value Rs. 100 were purchased when the market value was Rs. 120. Company
had declared 20% dividend. Find the rate of return on the investment.
(1) 16.67%
(2) 15.67%
(3) 14.67%
(4) 13.67%.​

Answer 1

Rate of return is 16.667 %

Step-by-step explanation:

Given,

Face value = 100

Market value = 120

Dividend = 20 %

Let rate of return = x %

If 120 are invested ,the return Rs. 12

Then,

$\frac{20}{120} = \frac{x}{100}$

$x = \frac{100\times 20}{120}$

$x = \frac{2000}{120}$

x = 16.666667 %  

Rate of return is 16.6667 %

Answer 2

The correct option is (1) 16.67%

Step-by-step explanation:

Consider the provided information.

160 shares of face value Rs. 100 were purchased when the market value was Rs. 120.

FV = Rs 100

MV = Rs 120

Number of shares purchased = 160

Sum invested = Number of shares purchased × MV of each share

Sum invested = 160 × 120 = Rs 19,200

Dividend received on each share = 20% of FV of each share

Dividend received on each share = 20% of Rs 100 = 0.20×100 = Rs 20

Income = Number of shares purchased × Dividend received on each share

Income = 160 × 20 = Rs 3,200

Return % = $\dfrac{Income}{Investment} \times 100 \%$

Return % = $\dfrac{3200}{19200} \times 100 \%$

Return % = $16.67 \%$

Thus, the rate of return on investment is 16.67%.

Hence, the correct option is (1) 16.67%

#Learn more

https://brainly.in/question/13225429

Amit bol 24 shares of fv 100 by investing 3000 8% dividend was declared on shares find the MV of the share and the rate of return of the investment ​