If 40 shares of FV 80 were purchased for MV 100, and the company declared 25% dividend on shares, find the Rate of return.
Answers
Answer:
THIS IS SAMPLE QUESTION_______
FV=Rs.10,MV=Rs.25, Number of shares =50
(1) ∴ Sum investemtn =25×50=Rs.1250.
(2) Dividend per share =10×
100
30
=Rs.3
∴ Total dividend received =50×3=Rs.150.
(3) Rate of return =
Sum invested
Dividend income
×100
=
1250
150
×100=12%. HOPE IT HELPS.
Answer:
(Option) 20%
The Rate of Return = 20 %.
Step-by-step explanation:
Number of shares = 40
Face Value = Rs. 80
Market Value = Rs. 100
Rate of dividend = 25 %
The Rate of return = ??
Solution :
Rate of Return = (Total Dividend / Investment) × 100
Rate of dividend = 25 %
Dividend = No. of shares × FV × Rate of dividend
= 40 × 80 × (25/100)
= 800
Total Dividend = 800
Total Investment = Number of shares × Market Value
= 40 × 100
= 4,000
Total amount Invested = Rs. 4,000
Rate of Return = (Total Dividend / Investment) × 100
= (800 / 4,000 ) × 100
= 20 %
Rate of Return = 20 %
Therefore, The Rate of Return = 20% .