Question

can anyone answer this please

Answer 1

Given
Face value (F.V) = Rs 100
Rate of dividend = 15%
Market value (M.V) = 20% of 100 + 100
                       = Rs 100 + Rs 20
                       = Rs 120
Dividend = Rs 540

1. Dividend = Number of shares * Rate of dividend * Face value/100
   Rs 540 = Number of shares*15*100/100
Number of shares =  540/15 = 36

Sum invested = Number of shares * M.V
                        = 36*120
                        = Rs 4320

2. Rate of Return = Dividend/Investment *100
                             = 540/4320 * 100
                             = 12.5%