Question

Prashant has purchased 50 shares of FV Rs.100 for MV of Rs. 180. Company has paid dividend at 40%.Find the rate of return on his investment ​

Answer 1

Answer:

Step-by-step explanation:

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

= dividend/investment * 100

= 40/180 * 100

= 200/9

= 22.2%

Thus,

The rate of return of investment is 22.2%.

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