Question

A lady holds 1800, Rs 100 shares compnay that pays 15% dividend annually. Calculate her annual dividend. If she had bought these shares at 40% premium, what percentage return does she get on her investment?

Answer 1

Annual Div = (1800×100×15)/100
=27000 Rs.
If MV of 1 Share = 140 Rs.
Return % = (27000/1800×140)×100 %
= 10.7 %

Answer 2

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