Question

Question no. 185 : If 180 shares of FV * 10 were
purchased for MV of 24. Company declared 30%
dividend on the shares then the rate of return is​

Answer 1

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if 50 shares of fv rs.10 were purchased for mv of rs.25. company declared 30% dividend on the shares then find:

• (1) sum investment
• (2) dividend received
• (3) rate of return.

FV = Rs.10, MV = Rs.25, Number of shares = 50.

• (1) Sum investment = 25 x 50 = Rs.1250.

• (2) Dividend per share = 10 x 30/100 = Rs. 3 Total dividend received = 50 x 3 = Rs.150

• (3) Rate of return :

$= > \frac{Dividend \: income }{Sum \: invested}$

$= > \frac{150}{1250} \times 100 \\ \\ = > 12\% \: \: \: \: \: \: \: \: \: \: \: \: \: \:$