Question

rupees 50 shares of a company are quoted at a discount of 10% find the rate of dividend given by the company the return on the investment on the shares being 20%

Answer 1

let nominal price of the share
=x Rs.

therefore market price share
=0.9x Rs.

numder of shares bought
=50

let the % dividend
=y

therefore. Y 20
=50 x X x ___=50x0.9Xx ___
100. 100


=Y=0.9x20 or Y=18%