Question

Find face value of a 15% share, if Rs 12,500 were invested to purchase shares at a market value of Rs 150 and total dividend of Rs 125 was received​

Answer 1

Answer:

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=

suminvested

totaldivided

×100

=

1750

500

×100

28.57%

Then,

We get 28.57%