Question

Mr. Manilal purchased 90 shares of FV ₹100 for MV ₹115. Company declared 9% dividend on the shares. Find : a) sum invested. b) dividend received. c) rate of return.

Answer 1

a) Sum invested = ₹ 10,350

b) Dividend received = ₹ 810

c) rate of return = 7.83%

Step-by-step explanation:

Number of shares purchased by Mr. Manilal = 90 shares

FV of each share = ₹ 100

MV of each share = ₹ 115

Dividend on shares = 9%

a) Sum invested = Market Value of each share × Number of shares

                           = 115 × 90

                           = ₹ 10,350

b) Dividend received = 9% of 100

                                   = 0.09 × 100

                                   = ₹ 9.00 per share

Total dividend on 90 shares = 90 × 9 = ₹ 810

c) Rate of return = $\frac{income}{investment}\times 100$

                           = $\frac{810}{10,350}\times 100$

                           = 7.8260 ≈ 7.83%

a) Sum invested = ₹ 10,350

b) Dividend received = ₹ 810

c) rate of return = 7.83%

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