Question

a man invests rs.22,500 in rs.50 shares available at 10% discount. if the dividend paid by the company is 12%, find (i) number of shares purchased
(ii) annual dividend
(iii) rate of return he gets on his investment​

Answer 1

Answer:

Investment amount = Rs.22500

Return from the investment is the annual dividend that he earns. So the annual dividend earned per share is 0.12×50=6 and the total annual dividend earned is 6×500=3000

So the return on his investment is Rs.3000 per annum

So the rate of return he gets is  

22500

3000

​  

×100=13.33

So the man gets a return of 13% per annum.

Step-by-step explanation: