Question

Shri Shantilal has purchased 150 shares of FV rupees 100, for MV of rupees 120.Company has paid dividend at 7%. Find the rate of return on his investment. Solve the word problem

Answer 1

This is your answer.

Answer 2

Answer:

5.83 %

Step-by-step explanation:

Share purchased = 150

MV of share = 120

Amount invested = 150 * 120 =  18000

Dividend Announced = 7 %

dividend per share = (dividend % / 100) * Face Value

= (7/100) * 100

= 7

Dividend for 150 shares = 150 * 7 = 1050

Return on the investment = (1050/18000) * 100

= 5.83 %