Question

no. of shares = 50.
Face value = 100rs
Market value =80rs
dividend = 20%

find the rate of return.? ​

Answer 1

Answer:

Face value or Present value of a share= Rs 100

Number of shares bought by Aakash , when Price of each share was Rs 70=  25

Total amount that was contributed to shares = 70 × 25= Rs 1750

Present price of 25 shares = 100 × 25= Rs 2500

Dividend Provided = 20 %

Profit that is Amount or Reward got by Aakash in a share =20 % of 100=20

So, Now Present Worth of 25 shares = (100+20) × 25= Rs 3,000

Amount that Aakash got as a profit on his investment = Rs 3,000 - Rs 1,750= Rs 1,250

Rate of Return = %  

Answer 2

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