Question

iv) Shirin purchased a share of FV 100 for MV 120. If the rate of return for is 12.5%, find the dividend declared by the company.

Answer 1

The dividend declared by the company is 15%.

Step-by-step explanation:

Given data:

FV = Rs.100

MV = Rs.120

D = Dividend =  ?

Rate of return = 12.5 %

Let the dividend be x %

Since

12.5%/120 = x

x = 125 x 120/10 x 100

x = 15 %

Thus the dividend declared by the company is 15%.

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Answer 2

Answer:

15% per share dividend declared by the company.

Step-by-step explanation:

Given FV = 100

         MV = 120

Rate of return = 12.5%

Dividend = x

We have to calculate the dividend declared by the company.

If           100 : 12.5

Then    120 :  x

Therefore, $\frac{12.5}{100} =\frac{x}{120}$

x = $\frac{120\times 12.5}{100}$

x = $\frac{1500}{100}$

x = 15

The dividend declared by the company 15% per share.

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