Question

Arvind bought 50 shares of a company of face value Rs. 20 at a market value of Rs. 80 and 12% dividend. The total dividend received will be

Answer 1

Answer:

Solution



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FV=Rs.100

MV=Rs.80

Number of shares purchased =50

Sum invested = Number of shares purchased × MV of each share =50×80=Rs.4,000

Dividend received on each share =20 % of FV of each share =20% of Rs. 100 =10020×100=Rs.20

Total dividend received = Number of shares purchased × Dividend received on each share =50×20=Rs.1000

∴ Rate of return on investment =Sum−investedTotal−dividend−received×100% =40001000×100% =25%

Thus, the rate of return on investment is 25

Step-by-step explanation:

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Answer 2

Answer:

FV=Rs.100

MV=Rs.80

Number of shares purchased =50

Sum invested = Number of shares purchased × MV of each share =50×80=Rs.4,000

Dividend received on each share =20 % of FV of each share =20% of Rs. 100 =10020×100=Rs.20

Total dividend received = Number of shares purchased × Dividend received on each share =50×20=Rs.1000

∴ Rate of return on investment =Sum−investedTotal−dividend−received×100% =40001000×100% =25%

Thus, the rate of return on investment is 25FV=Rs.100

MV=Rs.80

Number of shares purchased =50

Sum invested = Number of shares purchased × MV of each share =50×80=Rs.4,000

Dividend received on each share =20 % of FV of each share =20% of Rs. 100 =10020×100=Rs.20

Total dividend received = Number of shares purchased × Dividend received on each share =50×20=Rs.1000

∴ Rate of return on investment =Sum−investedTotal−dividend−received×100% =40001000×100% =25%

Thus, the rate of return on investment is 25FV=Rs.100

MV=Rs.80

Number of shares purchased =50

Sum invested = Number of shares purchased × MV of each share =50×80=Rs.4,000

Dividend received on each share =20 % of FV of each share =20% of Rs. 100 =10020×100=Rs.20

Total dividend received = Number of shares purchased × Dividend received on each share =50×20=Rs.1000

∴ Rate of return on investment =Sum−investedTotal−dividend−received×100% =40001000×100% =25%

Thus, the rate of return on investment is 25

Step-by-step explanation: