Question

. A man purchased 300 shares of the face value of Rs. 100 each from the market at Rs. 400 per share. If a dividend of 24% is declared, find his earning percent on the investment.​

Answer 1

Given: Price of 1 share = Rs. 400

          Dividend rate = 24%

∴ Earning percent on investment = $\frac{24}{400}$ × $100$

                                                       = 6%

NOTE THE FOLLOWING :

Stock: It is the value of capital of a company

Face Value: The amount of money invested during the first time purchase of a particular share