Question

Anand purchased a shares of Rs 100 for Rs. 200. The company declared a dividend of 40%. After receiving the dividend, Anand sold the share for Rs. 220 Find the average return on his investment *​

Answer 1

A N S W E R :

Given that,

Face value of share=Rs.100

Market value of shareRs.750

∴ Total amount invested =25×70=Rs.1750

Dividend =20%

∴ Total divided on 25 shares=20×25=Rs.1500

Now,

Rate of return=suminvestedtotaldivided×100

=1750500×100

28.57%

Then,

We get 28.57%