a lady walks 1800 rupees 100 shares of a company that pays 15% annually calculator annual dividend if she had bought these shares at 40% premium what percentage return the does she get
on investment
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Given:
Total number of shares = 1800
Nominal value of each share = Rs. 100
And rate o dividend = 15%
Total face value of 1800 shares = 100 × 1800
= Rs. 180000
Therefore total dividend = 180000 × 15/100
= Rs. 2700
Therefore:
Market value of each share = 100 + 40 = Rs. 140
Now the total investment = 140 × 1800
= Rs. 252000
Therefore percentage on his return
= (27000 × 100)/ 252000
= 10.7%
apx 11%
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