Question

Amit purchased a share of F.V. of Rupees 100 for M.V. of Rupees 120. The Company declared 15% dividend on the share. Find the rate of return.

2 points

12.5%

15%

12%

5%

​

Answer 1

Step-by-step explanation:

Face Value =100

Market Value =120

The dividend on the share =15% of its FV =

100

15

×100=15

Rate of return =x=

120

15

×100 (∵ Rate of return =

Investment

Income

×100)

⇒2x=

120

3000

=25%