Question

If Mr. Amit purchased a share in Rs. 500 and sold it for Rs. 800 after a period of 2 years. During the period, he also received a dividend of Rs. 50. Find out the return?​

Answer 1

Explanation:

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%

Answer 2

In this transaction Return will be 70%.

Explanation:

Given :

• Purchased Price of Shares = Rs. 500
• Selling Price of Shares = Rs. 800
• During 2 years period, received dividend
• Amount of dividend = Rs 50

To find :

• Find out The Return

Solution :

• Profit =

Selling Price of Shares - Purchased Price of Shares

$\longrightarrow$ 800 - 500

$\longrightarrow$ 300

Total Profit = 300 + Amount of dividend

$\longrightarrow$ 300 + 50

$\longrightarrow$ 350

Rate of Return = Total dividend (profit) /Investment × 100

$\longrightarrow$ 350 / 500 × 100

$\longrightarrow$ 70

∴ The Return = 70%