Question

Mr sharma purchased 25 shares of a company of Fv rs 50 at MV rs 56.the company declared 9% dividend.After receiving devidend,he sold brokerage at the rate of 0.5 %for transaction. what is his profit or loss in this transaction?​

Answer 1

Answer:

Amount of Dividend per share = 50 x 9%

= 50 x 9/100

= 4.5

Amount earned from dividends = 25 x 4.5

  = 62.5

Mr. Sharama buys share for 56 and sells it for 52. So, there is a loss of 4 rupees per share.

Total loss by selling the shares = 4 x 25

  = 100

Transaction value when he sells shares = 52 x 25

= 1300

Brokerage = 1300 x 0.5%

 = 6.5

Net profit/loss = 62.5 - 100 - 6.5

  = - 44

So the loss is 44 Rupees.