Question

Mr. Amol purchased 50 shares of face Value Rs. 100
when the market value of the share was Rs. 80.
Company had given 20% dividend. Find the rate of
return of investment .​

Answer 1

Answer:

MATHS

Mr.Amol purchase 50 shares of face value 100 when the Market value of the share was 80. Company had given 20% dividend. Find the rate of return on investment.

December 26, 2019avatar

Yugal Taneja

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ANSWER

FV=Rs.100

MV=Rs.80

Number of shares purchased =50

Sum invested = Number of shares purchased × MV of each share =50×80=Rs.4,000

Dividend received on each share =20 % of FV of each share =20% of Rs. 100 =

100

20

×100=Rs.20

Total dividend received = Number of shares purchased × Dividend received on each share =50×20=Rs.1000

∴ Rate of return on investment =

Sum−invested

Total−dividend−received

×100% =

4000

1000

×100% =25%

Thus, the rate of return on investment is 25%

Answer 2

Answer:

the rate of return on investment. = 25%

Step-by-step explanation:

Mr.Amol purchased 50 shares of Face Value rupees 100 when the Market value of the share was rupees 80.

Purchased 50 shares at Rs 80 per share

=> Investment = 50 * 80 = Rs 4000

Face Value of a share = Rs 100

Dividend = 20%

Dividend on 1 share = (20/100) * 100 = Rs 20

Dividend on 50 Shares = 50 * 20 = Rs 1000

Return on on investment = Rs 1000

& Amount invested = Rs 4000

Rate of Return on investment = (1000/4000) * 100 = 25 %

the rate of return on investment. = 25%