Question

Prashant bought 50 shares of fv 100 having mv rs180 company gave 40%dividend on the share find the return investment

Answer 1

Here is the answer

Solution

FV = Rs 100

The dividend on FV Rs. 100 at 40% is Rs. 40

MV of the share is Rs 180

Therefore,
On investing Rs. 180 ,the dividend is Rs. 40

Rate of return of investment

=
$\bf{\frac{dividend}{investment}} \times 100$

$\bf {= \frac{40}{180} \times 100}$

$\bf{ = \frac{200}{9} } \approx 22.2$

Thus,
The rate of return of investment is 22.2%.

Thanks!!

Answer 2

Answer:

FV=Rs.100

the dividend on Rs.100 at 40% is Rs.40

MV of the share is Rs.180

therefore,

on investing Rs.180,the dividend is Rs.40

rate of return is of investment

=dividend÷investment×100

=40÷180×100

=200÷9=22.2

thus,

the rate of return of investment is 22.2